In the latest trading session, Vertex Pharmaceuticals (VRTX) closed at $484.01, marking a +0.11% move from the previous day. This change outpaced the S&P 500's 4.84% loss on the day. At the same time, the Dow lost 3.98%, and the tech-heavy Nasdaq lost 5.97%.

Shares of the drugmaker witnessed a loss of 1.66% over the previous month, beating the performance of the Medical sector with its loss of 4.6% and the S&P 500's loss of 4.7%.

The upcoming earnings release of Vertex Pharmaceuticals will be of great interest to investors. The company is forecasted to report an EPS of $4.24, showcasing a 10.92% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.81 billion, up 4.56% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $17.68 per share and revenue of $11.85 billion, indicating changes of +4109.52% and +7.57%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Vertex Pharmaceuticals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.23% decrease. Currently, Vertex Pharmaceuticals is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 27.35. For comparison, its industry has an average Forward P/E of 17.83, which means Vertex Pharmaceuticals is trading at a premium to the group.

One should further note that VRTX currently holds a PEG ratio of 0.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 31% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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