Vertex Pharmaceuticals (VRTX) Advances But Underperforms Market: Key Facts

Core Insights - Vertex Pharmaceuticals (VRTX) closed at $428, with a slight increase of +0.03% from the previous day, underperforming the S&P 500's gain of 0.61% [1] - Over the past month, VRTX shares have appreciated by 4.83%, outperforming the Medical sector's gain of 1.64% and the S&P 500's gain of 2.08% [1] Earnings Expectations - Analysts expect Vertex Pharmaceuticals to report earnings of $4 per share, reflecting a year-over-year decline of 4.76% [2] - The consensus estimate for revenue is $2.77 billion, indicating a 10.18% increase compared to the same quarter of the previous year [2] Analyst Estimates - Changes in analyst estimates for Vertex Pharmaceuticals are crucial as they reflect the evolving business trends [3] - Upward revisions in estimates indicate analysts' positive outlook on the company's operations and profit generation capabilities [3] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has historically outperformed, with 1 stocks returning an average annual gain of +25% since 1988 [4][5] - Currently, Vertex Pharmaceuticals holds a Zacks Rank of 3 (Hold), with a recent downward shift of 2.39% in the consensus EPS estimate [5] Valuation Metrics - Vertex Pharmaceuticals has a Forward P/E ratio of 23.44, which is higher than the industry average of 21.95, suggesting it is trading at a premium [6] - The current PEG ratio for VRTX is 1.92, compared to the industry average of 1.36, indicating a higher valuation relative to expected earnings growth [7] Industry Context - The Medical - Biomedical and Genetics industry, to which Vertex Pharmaceuticals belongs, has a Zacks Industry Rank of 72, placing it in the top 29% of over 250 industries [7] - The Zacks Industry Rank evaluates the performance of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [8]