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In the latest trading session, Vertex Pharmaceuticals (VRTX) closed at $485.99, marking a +0.85% move from the previous day. This change outpaced the S&P 500's 0.07% gain on the day. On the other hand, the Dow registered a loss of 0.13%, and the technology-centric Nasdaq increased by 0.14%.

Shares of the drugmaker witnessed a loss of 0.29% over the previous month, beating the performance of the Medical sector with its loss of 1.99% and underperforming the S&P 500's gain of 4.34%.

The upcoming earnings release of Vertex Pharmaceuticals will be of great interest to investors. The company's earnings report is expected on August 1, 2024. It is anticipated that the company will report an EPS of $4.09, marking a 5.14% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.63 billion, indicating a 5.3% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $16.94 per share and a revenue of $10.72 billion, representing changes of +11.23% and +8.64%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Vertex Pharmaceuticals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Vertex Pharmaceuticals boasts a Zacks Rank of #2 (Buy).

From a valuation perspective, Vertex Pharmaceuticals is currently exchanging hands at a Forward P/E ratio of 28.45. This valuation marks a premium compared to its industry's average Forward P/E of 22.98.

Meanwhile, VRTX's PEG ratio is currently 2.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 2.02.

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 29% of over 250 industries.

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.

To follow VRTX in the coming trading sessions, be sure to utilize Zacks.com.

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Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report

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