In the latest trading session, Vertex Pharmaceuticals (VRTX) closed at $475.49, marking a -1.41% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 3.46%. At the same time, the Dow lost 2.5%, and the tech-heavy Nasdaq lost 4.31%.

Coming into today, shares of the drugmaker had lost 2.65% in the past month. In that same time, the Medical sector lost 10.85%, while the S&P 500 lost 5.27%.

Investors will be eagerly watching for the performance of Vertex Pharmaceuticals in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 5, 2025. The company is forecasted to report an EPS of $4.30, showcasing a 9.66% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.82 billion, showing a 4.68% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $17.78 per share and revenue of $11.85 billion, which would represent changes of +4133.33% and +7.57%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Vertex Pharmaceuticals. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Vertex Pharmaceuticals is holding a Forward P/E ratio of 26.72. Its industry sports an average Forward P/E of 16, so one might conclude that Vertex Pharmaceuticals is trading at a premium comparatively.

It's also important to note that VRTX currently trades at a PEG ratio of 0.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.26.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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