Vertex Pharmaceuticals (VRTX - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this drugmaker have returned +4.2% over the past month versus the Zacks S&P 500 composite's -0.4% change. The Zacks Medical - Biomedical and Genetics industry, to which Vertex belongs, has gained 5.8% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Vertex is expected to post earnings of $4.94 per share for the current quarter, representing a year-over-year change of +2.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.7%.
The consensus earnings estimate of $19.02 for the current fiscal year indicates a year-over-year change of +3.4%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $20.56 indicates a change of +8.1% from what Vertex is expected to report a year ago. Over the past month, the estimate has changed -0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Vertex.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Vertex, the consensus sales estimate for the current quarter of $3.4 billion indicates a year-over-year change of +10.4%. For the current and next fiscal years, $13.2 billion and $14.62 billion estimates indicate +10% and +10.8% changes, respectively.
Last Reported Results and Surprise HistoryVertex reported revenues of $3.33 billion in the last reported quarter, representing a year-over-year change of +12.5%. EPS of $4.73 for the same period compares with $4.52 a year ago.
Compared to the Zacks Consensus Estimate of $3.23 billion, the reported revenues represent a surprise of +3.32%. The EPS surprise was -1.25%.
Over the last four quarters, Vertex surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Vertex is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Vertex. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $528.90, marking a -3.15% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.58%. Meanwhile, the Dow experienced a drop of 1.18%, and the technology-dominated Nasdaq saw a decrease of 0.32%.
Heading into today, shares of the drugmaker had gained 4.24% over the past month, outpacing the Medical sector's gain of 2.73% and the S&P 500's loss of 0.36%.
Market participants will be closely following the financial results of Vertex Pharmaceuticals in its upcoming release. On that day, Vertex Pharmaceuticals is projected to report earnings of $4.94 per share, which would represent year-over-year growth of 2.92%. Alongside, our most recent consensus estimate is anticipating revenue of $3.4 billion, indicating a 10.36% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.02 per share and a revenue of $13.2 billion, signifying shifts of +3.37% and +10.01%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vertex Pharmaceuticals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, there's been a 0.08% rise in the Zacks Consensus EPS estimate. Vertex Pharmaceuticals is currently a Zacks Rank #3 (Hold).
Looking at valuation, Vertex Pharmaceuticals is presently trading at a Forward P/E ratio of 28.71. This indicates a premium in contrast to its industry's Forward P/E of 21.65.
Also, we should mention that VRTX has a PEG ratio of 2.1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Medical - Biomedical and Genetics industry stood at 1.93 at the close of the market yesterday.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Beacon Pointe Advisors LLC purchased a new stake in Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) in the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 17,047 shares of the pharmaceutical company's stock, valued at approximately $8,466,000. A number of other hedge funds have
Ancora Advisors LLC purchased a new position in shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,127 shares of the pharmaceutical company’s stock, valued at approximately $560,000.
A number of other institutional investors and hedge funds have also bought and sold shares of VRTX. Bangor Savings Bank boosted its holdings in Vertex Pharmaceuticals by 0.4% in the second quarter. Bangor Savings Bank now owns 4,470 shares of the pharmaceutical company’s stock valued at $2,220,000 after acquiring an additional 20 shares during the last quarter. Trust Point Inc. raised its holdings in Vertex Pharmaceuticals by 2.7% during the 2nd quarter. Trust Point Inc. now owns 793 shares of the pharmaceutical company’s stock worth $394,000 after purchasing an additional 21 shares during the last quarter. Williams Jones Wealth Management LLC. lifted its position in shares of Vertex Pharmaceuticals by 1.9% in the 4th quarter. Williams Jones Wealth Management LLC. now owns 1,155 shares of the pharmaceutical company’s stock worth $524,000 after purchasing an additional 21 shares during the period. Cannell & Spears LLC increased its position in shares of Vertex Pharmaceuticals by 1.2% during the first quarter. Cannell & Spears LLC now owns 1,983 shares of the pharmaceutical company’s stock worth $885,000 after buying an additional 23 shares during the period. Finally, Glenview Trust Co raised its stake in Vertex Pharmaceuticals by 0.3% during the fourth quarter. Glenview Trust Co now owns 7,005 shares of the pharmaceutical company’s stock worth $3,176,000 after buying an additional 24 shares during the last quarter. 90.96% of the stock is currently owned by institutional investors and hedge funds.
Vertex Pharmaceuticals Price Performance NASDAQ:VRTX opened at $541.69 on Friday. The firm has a 50-day moving average of $502.08 and a 200-day moving average of $468.67. The company has a market cap of $137.48 billion, a PE ratio of 31.53, a PEG ratio of 2.38 and a beta of 0.30. Vertex Pharmaceuticals Incorporated has a one year low of $374.17 and a one year high of $555.69.
Vertex Pharmaceuticals (NASDAQ:VRTX – Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The pharmaceutical company reported $4.73 earnings per share for the quarter, missing the consensus estimate of $4.74 by ($0.01). The business had revenue of $3.33 billion during the quarter, compared to the consensus estimate of $3.23 billion. Vertex Pharmaceuticals had a net margin of 35.00% and a return on equity of 23.09%. Vertex Pharmaceuticals’s revenue was up 12.5% compared to the same quarter last year. During the same period in the previous year, the business posted $4.52 EPS. On average, equities research analysts expect that Vertex Pharmaceuticals Incorporated will post 16.86 earnings per share for the current fiscal year. Analyst Upgrades and Downgrades A number of analysts have commented on VRTX shares. Cantor Fitzgerald upped their price target on shares of Vertex Pharmaceuticals from $590.00 to $595.00 and gave the company an “overweight” rating in a research report on Tuesday, August 4th. Stifel Nicolaus set a $500.00 target price on Vertex Pharmaceuticals in a research note on Tuesday, August 4th. Sanford C. Bernstein upgraded Vertex Pharmaceuticals to a “strong-buy” rating in a report on Wednesday, July 29th. Morgan Stanley lifted their price objective on shares of Vertex Pharmaceuticals from $612.00 to $616.00 and gave the company an “overweight” rating in a research note on Tuesday, May 5th. Finally, UBS Group raised their price target on shares of Vertex Pharmaceuticals from $545.00 to $585.00 and gave the stock a “buy” rating in a report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $563.50.
View Our Latest Research Report on VRTX
Insider Activity In related news, EVP Duncan Mckechnie sold 1,541 shares of the stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $519.00, for a total value of $799,779.00. Following the completion of the sale, the executive vice president directly owned 11,001 shares of the company’s stock, valued at approximately $5,709,519. This represents a 12.29% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Carmen Bozic sold 4,062 shares of Vertex Pharmaceuticals stock in a transaction on Monday, June 15th. The stock was sold at an average price of $450.00, for a total transaction of $1,827,900.00. Following the transaction, the chief marketing officer directly owned 16,953 shares in the company, valued at $7,628,850. This represents a 19.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 10,464 shares of company stock worth $4,959,397 over the last 90 days. 0.20% of the stock is currently owned by corporate insiders.
(Free Report)
Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.
Vertex’s marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.
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EP Wealth Advisors LLC acquired a new stake in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 9,027 shares of the pharmaceutical company’s stock, valued at approximately $4,484,000.
Other institutional investors have also recently bought and sold shares of the company. Meeder Asset Management Inc. bought a new position in shares of Vertex Pharmaceuticals in the 2nd quarter worth $26,000. Community Financial Services Group LLC bought a new stake in Vertex Pharmaceuticals in the second quarter valued at about $26,000. Elevation Wealth Partners LLC increased its holdings in Vertex Pharmaceuticals by 103.7% in the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the pharmaceutical company’s stock valued at $27,000 after purchasing an additional 28 shares during the last quarter. Motiv8 Investments LLC acquired a new position in Vertex Pharmaceuticals in the fourth quarter valued at about $26,000. Finally, Swiss RE Ltd. acquired a new position in Vertex Pharmaceuticals in the fourth quarter valued at about $28,000. Institutional investors and hedge funds own 90.96% of the company’s stock.
Analyst Upgrades and Downgrades A number of analysts have recently commented on the company. Weiss Ratings raised Vertex Pharmaceuticals from a “buy (b-)” rating to a “buy (b)” rating in a research note on Wednesday, August 5th. Truist Financial lifted their price objective on shares of Vertex Pharmaceuticals from $560.00 to $565.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Cantor Fitzgerald boosted their price objective on shares of Vertex Pharmaceuticals from $590.00 to $595.00 and gave the company an “overweight” rating in a report on Tuesday, August 4th. Royal Bank Of Canada upped their target price on shares of Vertex Pharmaceuticals from $543.00 to $570.00 and gave the company an “outperform” rating in a research note on Tuesday, July 7th. Finally, TD Cowen increased their target price on shares of Vertex Pharmaceuticals from $525.00 to $550.00 and gave the stock a “buy” rating in a report on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $563.50.
View Our Latest Analysis on VRTX Vertex Pharmaceuticals Price Performance Shares of Vertex Pharmaceuticals stock opened at $548.05 on Friday. Vertex Pharmaceuticals Incorporated has a 1 year low of $374.17 and a 1 year high of $555.32. The business has a 50-day moving average of $492.65 and a two-hundred day moving average of $465.92. The company has a market capitalization of $139.10 billion, a P/E ratio of 31.90, a price-to-earnings-growth ratio of 2.27 and a beta of 0.30.
Vertex Pharmaceuticals (NASDAQ:VRTX – Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The pharmaceutical company reported $4.73 EPS for the quarter, missing analysts’ consensus estimates of $4.74 by ($0.01). Vertex Pharmaceuticals had a return on equity of 23.09% and a net margin of 35.00%.The business had revenue of $3.33 billion for the quarter, compared to analyst estimates of $3.23 billion. During the same period in the prior year, the business earned $4.52 EPS. The company’s revenue for the quarter was up 12.5% compared to the same quarter last year. On average, equities analysts anticipate that Vertex Pharmaceuticals Incorporated will post 16.86 EPS for the current fiscal year.
Insider Buying and Selling at Vertex Pharmaceuticals In other news, EVP Duncan Mckechnie sold 1,541 shares of the company’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $519.00, for a total value of $799,779.00. Following the completion of the transaction, the executive vice president owned 11,001 shares in the company, valued at $5,709,519. This represents a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Carmen Bozic sold 4,062 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $450.00, for a total transaction of $1,827,900.00. Following the sale, the chief marketing officer directly owned 16,953 shares of the company’s stock, valued at $7,628,850. This represents a 19.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 10,464 shares of company stock valued at $4,959,397. 0.20% of the stock is currently owned by corporate insiders.
(Free Report)
Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.
Vertex’s marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.
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Advisors Capital Management LLC purchased a new position in shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 1,258 shares of the pharmaceutical company’s stock, valued at approximately $625,000.
A number of other hedge funds have also recently modified their holdings of VRTX. BlackRock Inc. bought a new position in Vertex Pharmaceuticals in the 2nd quarter worth $11,975,849,000. Capital Research Global Investors increased its position in Vertex Pharmaceuticals by 4.6% in the fourth quarter. Capital Research Global Investors now owns 17,316,344 shares of the pharmaceutical company’s stock worth $7,850,544,000 after buying an additional 763,063 shares in the last quarter. State Street Corp raised its stake in shares of Vertex Pharmaceuticals by 0.7% in the fourth quarter. State Street Corp now owns 11,689,539 shares of the pharmaceutical company’s stock worth $5,299,569,000 after buying an additional 83,539 shares during the period. Capital International Investors raised its stake in shares of Vertex Pharmaceuticals by 0.9% in the fourth quarter. Capital International Investors now owns 4,733,596 shares of the pharmaceutical company’s stock worth $2,146,041,000 after buying an additional 44,537 shares during the period. Finally, Victory Capital Management Inc. lifted its position in shares of Vertex Pharmaceuticals by 49.4% during the 4th quarter. Victory Capital Management Inc. now owns 3,356,766 shares of the pharmaceutical company’s stock valued at $1,521,851,000 after buying an additional 1,109,200 shares in the last quarter. Institutional investors own 90.96% of the company’s stock.
Vertex Pharmaceuticals Trading Up 1.4% NASDAQ:VRTX opened at $548.05 on Friday. The business’s 50-day moving average is $492.65 and its 200 day moving average is $465.92. Vertex Pharmaceuticals Incorporated has a 12 month low of $374.17 and a 12 month high of $555.32. The company has a market capitalization of $139.10 billion, a P/E ratio of 31.90, a P/E/G ratio of 2.24 and a beta of 0.30.
Vertex Pharmaceuticals (NASDAQ:VRTX – Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The pharmaceutical company reported $4.73 earnings per share for the quarter, missing the consensus estimate of $4.74 by ($0.01). Vertex Pharmaceuticals had a net margin of 35.00% and a return on equity of 23.09%. The firm had revenue of $3.33 billion for the quarter, compared to analysts’ expectations of $3.23 billion. During the same quarter in the prior year, the business earned $4.52 EPS. The business’s quarterly revenue was up 12.5% compared to the same quarter last year. On average, research analysts forecast that Vertex Pharmaceuticals Incorporated will post 16.86 earnings per share for the current year. Analysts Set New Price Targets VRTX has been the topic of a number of recent analyst reports. Wall Street Zen cut shares of Vertex Pharmaceuticals from a “buy” rating to a “hold” rating in a research note on Sunday, June 28th. UBS Group raised their price objective on shares of Vertex Pharmaceuticals from $545.00 to $585.00 and gave the company a “buy” rating in a research report on Monday, July 13th. Stifel Nicolaus set a $500.00 target price on shares of Vertex Pharmaceuticals in a research note on Tuesday, August 4th. TD Cowen upped their target price on shares of Vertex Pharmaceuticals from $525.00 to $550.00 and gave the stock a “buy” rating in a report on Tuesday, August 4th. Finally, Barclays raised their price target on Vertex Pharmaceuticals from $615.00 to $617.00 and gave the company an “overweight” rating in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $563.50.
View Our Latest Stock Analysis on VRTX
Insider Transactions at Vertex Pharmaceuticals In other news, CMO Carmen Bozic sold 596 shares of the company’s stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $482.50, for a total transaction of $287,570.00. Following the sale, the chief marketing officer directly owned 15,337 shares in the company, valued at approximately $7,400,102.50. This represents a 3.74% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Duncan Mckechnie sold 1,541 shares of the stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $519.00, for a total transaction of $799,779.00. Following the completion of the transaction, the executive vice president directly owned 11,001 shares of the company’s stock, valued at approximately $5,709,519. The trade was a 12.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 10,464 shares of company stock worth $4,959,397 in the last three months. Insiders own 0.20% of the company’s stock.
Vertex Pharmaceuticals Company Profile (Free Report)
Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.
Vertex’s marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.
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Allworth Financial LP acquired a new stake in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 4,487 shares of the pharmaceutical company’s stock, valued at approximately $2,229,000.
Several other institutional investors and hedge funds have also bought and sold shares of the company. BlackRock Inc. purchased a new stake in shares of Vertex Pharmaceuticals during the second quarter worth $11,975,849,000. Norges Bank purchased a new position in shares of Vertex Pharmaceuticals in the fourth quarter valued at $1,440,149,000. AIGH Capital Management LLC bought a new stake in shares of Vertex Pharmaceuticals during the 2nd quarter valued at $26,725,000. Bank of New York Mellon Corp purchased a new stake in Vertex Pharmaceuticals during the 2nd quarter worth about $830,842,000. Finally, Deutsche Bank AG purchased a new stake in Vertex Pharmaceuticals during the 2nd quarter worth about $784,391,000. 90.96% of the stock is owned by institutional investors.
Insider Buying and Selling at Vertex Pharmaceuticals In other news, EVP Ourania Tatsis sold 1,500 shares of the company’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $524.99, for a total transaction of $787,485.00. Following the completion of the transaction, the executive vice president directly owned 45,321 shares of the company’s stock, valued at approximately $23,793,071.79. This represents a 3.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Carmen Bozic sold 4,062 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $450.00, for a total transaction of $1,827,900.00. Following the sale, the chief marketing officer owned 16,953 shares of the company’s stock, valued at approximately $7,628,850. This represents a 19.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 10,464 shares of company stock worth $4,959,397. 0.20% of the stock is currently owned by company insiders.
Vertex Pharmaceuticals Stock Up 1.4% Vertex Pharmaceuticals stock opened at $548.05 on Friday. The firm has a fifty day simple moving average of $492.65 and a two-hundred day simple moving average of $465.92. Vertex Pharmaceuticals Incorporated has a twelve month low of $374.17 and a twelve month high of $555.32. The company has a market capitalization of $139.10 billion, a PE ratio of 31.90, a P/E/G ratio of 2.24 and a beta of 0.30. Vertex Pharmaceuticals (NASDAQ:VRTX – Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The pharmaceutical company reported $4.73 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.74 by ($0.01). Vertex Pharmaceuticals had a net margin of 35.00% and a return on equity of 23.09%. The company had revenue of $3.33 billion for the quarter, compared to the consensus estimate of $3.23 billion. During the same period last year, the business posted $4.52 earnings per share. The firm’s quarterly revenue was up 12.5% compared to the same quarter last year. As a group, equities analysts expect that Vertex Pharmaceuticals Incorporated will post 16.86 earnings per share for the current fiscal year.
Wall Street Analyst Weigh In VRTX has been the subject of a number of recent analyst reports. Truist Financial lifted their target price on Vertex Pharmaceuticals from $560.00 to $565.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Royal Bank Of Canada raised their price objective on shares of Vertex Pharmaceuticals from $543.00 to $570.00 and gave the company an “outperform” rating in a research report on Tuesday, July 7th. Sanford C. Bernstein raised shares of Vertex Pharmaceuticals to a “strong-buy” rating in a research note on Wednesday, July 29th. Canaccord Genuity Group upped their target price on shares of Vertex Pharmaceuticals from $436.00 to $442.00 and gave the stock a “hold” rating in a report on Tuesday, August 4th. Finally, Morgan Stanley increased their target price on shares of Vertex Pharmaceuticals from $612.00 to $616.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Vertex Pharmaceuticals presently has an average rating of “Moderate Buy” and an average price target of $563.50.
Read Our Latest Stock Analysis on Vertex Pharmaceuticals
Vertex Pharmaceuticals Company Profile (Free Report)
Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.
Vertex’s marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.
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The iShares U.S. Pharmaceuticals ETF (IHE -2.26%) and VanEck Biotech ETF (BBH -2.83%) offer targeted exposure to healthcare, with one focusing on established pharmaceutical giants and the other on high-growth genetic research firms.
Both funds provide concentrated access to specific healthcare sub-sectors, providing tools for investors looking to outpace broader market benchmarks through specialized thematic exposure. While the VanEck fund targets the biotechnology industry via a concentrated 24-stock index, the iShares fund casts a wider net across the established U.S. pharmaceutical landscape. Investors may choose between these two vehicles to dial into different risk-reward profiles within the drug-development and medical innovation fields, depending on their outlook for high-growth genetics versus the relative stability of pharmaceutical giants that often have more diversified cash flows.
Snapshot (cost & size)MetricBBHIHEIssuerVanEckiSharesShare price$219.64 (as of 2026-08-13)$102.99 (as of 2026-08-13)Expense ratio0.35%0.37%1-yr return (as of 2026-08-13)34.0%53.2%Dividend yield0.4%1.4%Beta0.690.48AUM$427.3 million$1.6 billionBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on Aug. 13, 2026.
The VanEck fund is slightly more affordable with a 0.35% expense ratio compared to 0.37% for the iShares fund. However, the iShares fund offers a significantly higher payout, providing a yield advantage of about a full percentage point over its biotech-focused peer.
Performance & risk comparisonMetricBBHIHEMax drawdown (5 yr)(39.7%)(16.0%)Growth of $1,000 over 5 years (total return)$1,061$1,725What's insideiShares U.S. Pharmaceuticals ETF focuses entirely on the healthcare sector, maintaining 56 positions to track the performance of U.S.-based drugmakers. Its largest positions include Johnson & Johnson (JNJ -2.21%) at 22.1%, Eli Lilly (LLY -2.81%) at 20.8%, and Bristol Myers Squibb (BMY -3.16%) at 4.8%. This heavy concentration in large-cap pharmaceutical leaders helps explain its lower volatility profile. It was launched in 2006. iShares U.S. Pharmaceuticals ETF has paid $1.47 per share over the trailing 12 months, which on its recent ~$102.99 share price works out to a 1.4% yield.
VanEck Biotech ETF also maintains 100% exposure to healthcare but with a narrower focus on 25 holdings, specifically those involved in genomic research and diagnostic technologies. Its largest positions include Amgen (AMGN -1.95%) at 16%, Gilead Sciences (GILD -2.82%) at 13%, and Vertex Pharmaceuticals (VRTX -2.14%) at 8.6%. This tighter focus on biotechnology companies can lead to higher volatility but offers distinct exposure to cutting-edge medical innovation that may not be found in a broader pharmaceutical fund. It was launched in 2011. VanEck Biotech ETF has paid $0.96 per share over the trailing 12 months, which on its recent ~$219.64 share price works out to a 0.4% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy?Few sectors are moving as fast as healthcare right now.
Both ETFs provide good exposure to the sector and have some similarities beyond their healthcare focus. For one, both funds are heavily concentrated in their top 10 holdings, with the iShares fund, IHE, allocating about 76% of its assets to its top 10 holdings, while the VanEck fund, BBH, allocates over tnearly 73% of its assets to its top 10 holdings.
Interestingly, the more concentrated VanEck fund offers more style diversification than iShares' offering. BBH holds 36% of its assets in large-cap stocks, 54% in mid-cap stocks, and 8% in small-cap equities.
IHE, meanwhile, holds 59% in large caps, 16% in mid caps, and 26% in small caps. The weightings toward large and small caps in a notable structure compared to BBH.
It is performance where these two healthcare funds really show differences.
Despite its concentration, BBH has not been as able to deliver outsized returns to its investors compared to IHE. BBH has returned 9%, 0.3%, and 6.4% over the 3-year, 5-year, and 10-year time frames. It's up 8.67% year to date.
IHE beats BBH in all those periods. Over the past 3-, 5-, and 10-year periods, IHE has generated annualized returns of 20.7%, 11.6%, and 8.6%, respectively. IHE is up nearly 21% in 2026.
Outperformance is the ultimate deciding factor when looking for the best ETF to invest in. In this case, IHE is the winner between these two healthcare-focused ETFs.
AssuredPartners Investment Advisors LLC purchased a new position in shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 4,147 shares of the pharmaceutical company’s stock, valued at approximately $2,060,000.
Several other institutional investors have also added to or reduced their stakes in VRTX. Community Financial Services Group LLC bought a new stake in shares of Vertex Pharmaceuticals during the 2nd quarter valued at approximately $26,000. Meeder Asset Management Inc. bought a new position in Vertex Pharmaceuticals in the 2nd quarter valued at approximately $26,000. Motiv8 Investments LLC bought a new position in Vertex Pharmaceuticals in the 4th quarter valued at approximately $26,000. Elevation Wealth Partners LLC boosted its position in Vertex Pharmaceuticals by 103.7% during the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the pharmaceutical company’s stock worth $27,000 after buying an additional 28 shares during the period. Finally, Swiss RE Ltd. acquired a new stake in Vertex Pharmaceuticals during the 4th quarter worth approximately $28,000. 90.96% of the stock is currently owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades VRTX has been the subject of several recent research reports. UBS Group upped their price target on shares of Vertex Pharmaceuticals from $545.00 to $585.00 and gave the company a “buy” rating in a research report on Monday, July 13th. Stifel Nicolaus set a $500.00 price objective on Vertex Pharmaceuticals in a report on Tuesday, August 4th. Canaccord Genuity Group raised their target price on Vertex Pharmaceuticals from $436.00 to $442.00 and gave the stock a “hold” rating in a research report on Tuesday, August 4th. Morgan Stanley upped their price target on Vertex Pharmaceuticals from $612.00 to $616.00 and gave the company an “overweight” rating in a research report on Tuesday, May 5th. Finally, Weiss Ratings upgraded Vertex Pharmaceuticals from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $563.50.
View Our Latest Stock Analysis on Vertex Pharmaceuticals Insider Activity In other news, EVP Ourania Tatsis sold 1,500 shares of the business’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $524.99, for a total transaction of $787,485.00. Following the completion of the sale, the executive vice president directly owned 45,321 shares of the company’s stock, valued at $23,793,071.79. The trade was a 3.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Carmen Bozic sold 4,062 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $450.00, for a total value of $1,827,900.00. Following the sale, the chief marketing officer directly owned 16,953 shares of the company’s stock, valued at $7,628,850. This represents a 19.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 10,464 shares of company stock worth $4,959,397 over the last three months. 0.20% of the stock is currently owned by insiders.
Vertex Pharmaceuticals Stock Performance Shares of Vertex Pharmaceuticals stock opened at $552.06 on Thursday. The stock has a market capitalization of $140.11 billion, a PE ratio of 32.13, a price-to-earnings-growth ratio of 2.19 and a beta of 0.30. Vertex Pharmaceuticals Incorporated has a 52 week low of $374.17 and a 52 week high of $553.69. The stock has a 50 day moving average price of $488.69 and a two-hundred day moving average price of $464.85.
Vertex Pharmaceuticals (NASDAQ:VRTX – Get Free Report) last issued its earnings results on Monday, August 3rd. The pharmaceutical company reported $4.73 earnings per share for the quarter, missing analysts’ consensus estimates of $4.74 by ($0.01). Vertex Pharmaceuticals had a return on equity of 23.09% and a net margin of 35.00%.The firm had revenue of $3.33 billion for the quarter, compared to analyst estimates of $3.23 billion. During the same period in the previous year, the company earned $4.52 earnings per share. Vertex Pharmaceuticals’s revenue for the quarter was up 12.5% compared to the same quarter last year. Research analysts forecast that Vertex Pharmaceuticals Incorporated will post 16.86 EPS for the current year.
(Free Report)
Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.
Vertex’s marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.
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Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of Crinetics Pharmaceuticals, Inc. (NasdaqGS: CRNX) to Vertex Pharmaceuticals Incorporated (NasdaqGS: VRTX). Under the terms of the proposed transaction, shareholders of Crinetics will receive $85.00 in cash for each share of Crinetics that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.
If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ([email protected]) toll free at any time at 833-538-3612, or visit https://www.ksfcounsel.com/cases/nasdaqgs-crnx/ to learn more.
To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.
NEW YORK & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of Crinetics Pharmaceuticals, Inc. (NasdaqGS: CRNX) to Vertex Pharmaceuticals Incorporated (NasdaqGS: VRTX). Under the terms of the proposed transaction, shareholders of Crinetics will receive $85.00 in cash for each share of Crinetics that they own. KSF is seeking to determine whether this considerati.
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Americké akcie vstupují do nového týdne poklesem, když všechny hlavní indexy odepisují. Výsledková sezóna nadále pokračuje, její tempo však zpomaluje.
Z titulů tzv. MAG 7 odepisuje Apple 2,0 % poté, co Jefferies snížila doporučení na „underperform“, přičemž analytici upozorňují na obtížnou cestu k uvedení dražšího iPhonu. Naopak Meta Platforms roste 0,4 % po představení nového AI modelu Muse Glimmer, který lze provozovat na jednom počítači a uživatelé si jej mohou stáhnout a dále upravovat. Microsoft (+1,2 %) plánuje v příštím roce výrazně navýšit výrobu vlastních AI čipů. Podle The Information jedná s TSMC o zajištění kapacit pro více než 300 tis. čipů Maia 300 s dodáním v roce 2027.
Berkshire Hathaway (+2,8 %) ve 2Q více než zdvojnásobila čistý zisk na 25,67 mld. USD, zatímco provozní zisk vzrostl o 16 % na 12,98 mld. USD. Společnost zároveň odkoupila vlastní akcie za přibližně 4,5 mld. USD a poprvé po více než třech letech během čtvrtletí více akcií nakoupila, než prodala. Akcie SpaceX oslabují o 0,3 % a pohybují se okolo své IPO ceny 135 USD. Výrazněji oslabuje těžební společnost Barrick Mining (-9,0 %) po dohodě s Newmontem ohledně Nevada Gold Mines, u níž analytici upozorňují na nižší než očekávané ocenění aktiv Barricku.
Společnost Barrick Mining zveřejnila své kvartální výsledky, kdy ve 2Q vykázala očištěný zisk na akcii 0,82 USD, v souladu s očekáváním trhu. Tržby dosáhly 5,29 mld. USD a překonaly analytický konsenzus 5,15 mld. USD. Očištěný zisk EBITDA dosáhl 3,63 mld. USD oproti očekávaným 3,5 mld. USD, zatímco volné peněžní toky ve výši 515 mil. USD zaostaly za odhady Wall Street 966 mil. USD. Produkce zlata činila 796 tis. uncí a překonala očekávání 763 tis. uncí. Společnost ponechala celoroční výhled produkce zlata i mědi beze změny a očekává kapitálové výdaje v rozmezí 3,8 až 4,2 mld. USD.
Společnost Ferguson (+2,6 %) ve 2Q vykázala tržby 8,75 mld. USD, z čehož 8,34 mld. USD připadalo na americký trh. Očištěný provozní zisk dosáhl 932 mil. USD a očištěný zisk EBITDA 994 mil. USD, zatímco provozní zisk činil 893 mil. USD. Management zároveň zlepšil celoroční výhled růstu tržeb na střední jednociferné tempo z předchozího nízkého až středního jednociferného růstu. Zároveň zvýšil spodní hranici očekávané upravené provozní marže na 9,5 %, přičemž horní hranici ponechal na 9,8 %. Výhled kapitálových výdajů byl posunut na 375 až 425 mil. USD z předchozích 300 až 400 mil. USD.
Intel (-4,4 %) plánuje veřejnou nabídku akcií v objemu 15 mld. USD, čímž podle Bloombergu využívá obnoveného zájmu investorů o svůj byznys v souvislosti s boomem datových center a AI infrastruktury. BMO Capital snížila cílovou cenu z 276 na 209 USD pro akcie Honeywell Aerospace (-4,9 %), investiční doporučení bylo ponecháno na stupni „Outperform“.
Akcie Vertex Pharmaceuticals posilují (+7,0 %) poté, co výsledky studie konkurenční společnosti Sionna Therapeutics u přípravku SION-719 zaostaly za očekáváním. Výsledek oslabil vyhlídky Sionny jako potenciálního konkurenta Vertexu v léčbě cystické fibrózy.
Analytici z Morgan Stanley a HSBC snížili společnosti The Trade Desk cílovou cenu. Akcie The Trade Desk odepisují 6,0 %.
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Zdroj: Bloomberg
Key Takeaways Vertex raised its 2026 revenue guidance to $13.1-$13.2B after Q2 sales rose 12% to $3.33B.ALYFTREK topped $1B in first-half revenues, helping drive 11% global cystic fibrosis growth.CASGEVY and JOURNAVX gained scale as Vertex prepared povetacicept for its Nov. 30 PDUFA date. Vertex Pharmaceuticals Incorporated (VRTX - Free Report) raised its 2026 revenue outlook as cystic fibrosis growth and contributions from newer products accelerated.
Management framed 2026 as an execution year, with commercial scaling, a near-term renal launch and the pending Crinetics acquisition shaping diversification.
VRTX Raises Outlook as Investment BuildsChief operating officer and CFO Charles Wagner said that second-quarter 2026 revenues rose 12% to $3.33 billion, topping the Zacks Consensus Estimate of $3.23 billion. Non-GAAP earnings of $4.73 per share missed the consensus estimate of $4.79 by 6 cents.
Wagner raised its full-year revenue guidance to $13.1-$13.2 billion from $12.95-$13.1 billion. The outlook still assumes at least $500 million from CASGEVY and JOURNAVX, and a 150-basis-point foreign-exchange benefit.
He kept non-GAAP operating expense guidance at $5.65-$5.75 billion but expects spending near the high end. The gross margin is expected just below 86%, reflecting product mix and manufacturing investments.
Vertex Reinforces CF LeadershipCEO and president Reshma Kewalramani emphasized ALYFTREK as the new standard of care in cystic fibrosis. Management said that global CF revenues grew 11%, supported by ALYFTREK uptake, TRIKAFTA demand and higher U.S. net pricing.
Chief commercial officer Duncan McKechnie said that ALYFTREK exceeded $1 billion in first-half revenues. Most sales came from patients switching from TRIKAFTA, with new, returning and rare-mutation patients also contributing.
Kewalramani set a demanding bar for next-generation CF programs. Vertex will advance assets only if they can move more patients below the 30-millimoles-per-liter sweat chloride threshold while retaining once-daily dosing and favorable drug properties.
VRTX Sees New Products Gaining ScaleChief commercial officer Duncan McKechnie said that CASGEVY revenues were $76 million, surging about 75% sequentially and more than 150% year over year. More infusions occurred in the first half than in all of 2025.
JOURNAVX generated $50 million, with prescriptions rising about 45% sequentially to roughly 535,000. McKechnie said that prescription growth is ahead of the 2026 forecast, though inventory and patient-support usage continue to affect recognized revenues.
McKechnie expects gross-to-net levels to normalize in the first half of 2027. He tied the timing to payer restrictions and heavier patient-support use as physician adoption outpaces access education.
Vertex Positions Povetacicept for LaunchKewalramani highlighted the Nov. 30 PDUFA date for povetacicept in IgA nephropathy and said that launch preparation is in its final stages. Vertex has completed hiring a renal field force, with about 90% bringing nephrology experience.
McKechnie said that the commercial case rests on efficacy, tolerability and once-monthly at-home administration. Vertex expects its field organization, payer work and patient-support programs to support adoption upon approval.
The renal pipeline extends beyond IgAN. Kewalramani said that inaxaplin’s AMPLITUDE interim analysis remains on track for early 2027, while AMPLIFIED results and VX-670 data in myotonic dystrophy type 1 are due in the second half of 2026.
VRTX Q&A Clarifies Key BenchmarksA JPMorgan analyst asked whether new IgAN drugs could separate on kidney-function outcomes. Kewalramani said that deeper reductions in proteinuria, hematuria and disease-driving antibodies should matter through their effect on progression to dialysis, transplant or death.
A Citi analyst pressed on Vertex’s next CF generation. Kewalramani reiterated that sweat chloride distribution, safety, once-daily dosing and drug-drug interaction profiles will determine whether a candidate advances.
A Wells Fargo analyst asked about JOURNAVX treatment duration. McKechnie said that prescriptions average five days in hospitals and 12-14 days in retail, producing an overall average of 10-11 days that has remained stable.
Vertex Keeps Execution-First PostureManagement’s tone remained confident but spending-aware. The company is prioritizing launch execution in pain and renal while maintaining CF growth and advancing clinical readouts.
The pending Crinetics acquisition would add rare endocrine diseases as a fifth pillar. Guidance excludes the transaction, which Vertex expects to close in the third quarter before updating its 2026 outlook.
Zacks Signals Mixed SetupVRTX currently carries a Zacks Rank #3 (Hold), a neutral near-term signal. Its Value Score and Growth Score are C, while Momentum Score and VGM Score are D, indicating middle-range value and growth characteristics but weaker momentum and combined style positioning. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Style Scores complement the Rank, with A or B scores preferred over lower grades. The current mix lacks strong style confirmation, and the Zacks Rank can change as analysts revise estimates after the reported results.
Key Takeaways VRTX missed Q2 earnings estimates but topped revenue expectations as total sales rose 12% y/y.Vertex saw growth from Alyftrek, Casgevy, and Journavx alongside higher overall product sales in Q2.VRTX ups 2026 revenue guidance to $13.10-$13.20 billion and expects non-CF revenues to exceed $500 million. Vertex Pharmaceuticals (VRTX - Free Report) reported adjusted earnings of $4.73 per share for the second quarter of 2026, missing the Zacks Consensus Estimate of $4.79. Earnings, however, rose around 4.6% year over year on higher product revenues.
Second-quarter total revenues of $3.33 billion beat the Zacks Consensus Estimate of $3.23 billion. Total revenues rose 12% year over year, primarily driven by higher sales of cystic fibrosis (CF) drugs Trikafta/Kaftrio and Alyftrek, as well as meaningful contributions from other new products, Journavx and Casgevy.
Year to date, shares of Vertex have risen 3.9% compared with the industry’s increase of 2.8%.
Image Source: Zacks Investment Research
VRTX's Q2 Earnings in DetailTrikafta generated sales worth $2.50 billion, down around 2% year over year. The product’s sales slightly beat the Zacks Consensus Estimate of $2.45 billion.
Alyftrek, a next-in-class triple combination regimen for CF, generated sales worth $573.6 million in the second quarter compared with $424.4 million in the first quarter. Per management, the U.S. and European launch of Alyftrek is progressing well across all patient groups. The drug surpassed $1 billion in global revenues in the first half of 2026.
Revenues from other CF products decreased 29.2% year over year to $137.1 million.
Revenues from Vertex and partner CRISPR Therapeutics’ (CRSP - Free Report) one-shot gene therapy, Casgevy, were $76.4 million in the second quarter of 2026, up 78% on a sequential basis and 151% on a year-over-year basis.
Casgevy is approved for two blood disorders, sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT). Vertex leads the global development and commercialization of Casgevy under the terms of the 2021 agreement, with support from CRISPR Therapeutics.
The FDA approved Casgevy for use in children aged two years and older with SCD or TDT in July 2026. Following the nod, Casgevy became the first and only genetic therapy to be approved for treating kids as young as two years for both severe SCD and TDT.
Vertex’s newest pain drug, Journavx (suzetrigine) generated $49.6 million in sales in the second quarter compared with $29 million in the first quarter. Journavx, a novel non-opioid pain medicine (suzetrigine), was approved in the United States in January 2025.
Journavx sales in the second quarter benefited from both strong underlying prescription growth and inventory restocking by distributors, following a reduction in channel inventory during the first quarter.
VRTX's Q2 Cost DiscussionAdjusted research and development (R&D) expenses increased 1.2% year over year to $888.7 million.
Adjusted selling, general and administrative (SG&A) expenses rose 44.7% to $520.2 million in the reported quarter, primarily driven by higher commercialization costs for pain and renal drugs.
During the quarter, Vertex recorded acquired in-process research and development (AIPR&D) costs of $21.4 million compared with $2.2 million in the year-ago quarter.
Adjusted operating income rose 7.5% year over year to $1.42 billion in the quarter.
VRTX's 2026 GuidanceVertex increased its full-year 2026 revenue guidance.
The company now expects total revenues to be in the range of $13.10-$13.20 billion for 2026 compared with the previous expectation of $12.95-$13.10 billion.
Vertex expects its non-CF product revenues to be more than $500 million in 2026, reflecting higher patient infusions for Casgevy and a ramp-up in Journavx prescriptions.
Combined adjusted R&D, AIPR&D and SG&A expense guidance for 2026 is in the band of $5.65-$5.75 billion. The adjusted tax rate is expected to be in the range of 19.5%-20.5%. Both remain unchanged from the previous expectation.
The guidance, however, does not reflect the impact of Vertex’s impending acquisition of Crinetics Pharmaceuticals (CRNX - Free Report) , which is expected to close later in the third quarter, subject to customary closing conditions.
VRTX's Recent Key UpdatesIn July 2026, Vertex agreed to acquire all outstanding shares of Crinetics for $85 per share, valuing the deal at around $10 billion.
The impending acquisition will add Crinetics’ marketed drug, Palsonify, which is the first once-daily oral therapy approved for treating adults with acromegaly, to Vertex’s commercial portfolio. The company will also add several of Crinetics’ pipeline candidates, further strengthening Vertex's long-term pipeline.
Vertex is rapidly advancing its mid- to late-stage pipeline in other disease areas like acute and neuropathic pain, APOL1-mediated kidney disease, IgA nephropathy (IgAN) and primary membranous nephropathy (pMN).
In June 2026, the FDA accepted VRTX’s regulatory filing seeking approval for its investigational candidate, povetacicept, for treating adults with IgAN, a rare progressive kidney disease. A final decision from the FDA is expected on Nov. 30, 2026.
Vertex is also developing povetacicept in a pivotal phase II/III study for a second renal indication, pMN. The company is also evaluating povetacicept in a mid-stage study for the treatment of generalized myasthenia gravis.
Vertex is conducting pivotal phase III studies on suzetrigine in diabetic peripheral neuropathy (DPN) and plans to complete enrollment in both studies by the end of 2026. It is also conducting a phase II study with the oral formulation of the next-gen Nav1.8 inhibitor, VX-993, in DPN.
VRTX’s Zacks RankVertex currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Susie Lisa - Senior Vice President of Investor Relations
Reshma Kewalramani - CEO, President & Director
Duncan J. McKechnie - Chief Commercial Officer, Head of North America Commercial & Executive VP
Charles Wagner - Executive VP, COO & CFO
Conference Call Participants
Salveen Richter - Goldman Sachs Group, Inc., Research Division
Geoffrey Meacham - Citigroup Inc., Research Division
Jessica Fye - JPMorgan Chase & Co, Research Division
Cory Kasimov - Evercore ISI Institutional Equities, Research Division
Brian Abrahams - RBC Capital Markets, Research Division
Evan Seigerman - BMO Capital Markets Equity Research
Michael Yee - UBS Investment Bank, Research Division
Tazeen Ahmad - BofA Securities, Research Division
Philip Nadeau - TD Cowen, Research Division
Terence Flynn - Morgan Stanley, Research Division
Mohit Bansal - Wells Fargo Securities, LLC, Research Division
Eliana Merle - Barclays Bank PLC, Research Division
Presentation
Operator
Good day, and welcome to the Vertex Pharmaceuticals Second Quarter 2026 Earnings Call. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to Ms. Susie Lisa. Please go ahead.
Susie Lisa
Senior Vice President of Investor Relations
Good evening, all. My name is Susie Lisa, and as the Senior Vice President of Investor Relations, it is my pleasure to welcome you to our Second Quarter 2026 Financial Results Conference Call. On tonight's call, making prepared remarks, we have Dr. Reshma Kewalramani, Vertex's CEO and President; Charlie Wagner, Chief Operating Officer and Chief Financial Officer; and Duncan McKechnie, Chief Commercial Officer. We recommend that you access the webcast slides as you listen to this call. The call is being recorded, and a replay will be available on our website.
We will make forward-looking statements on this call that are subject to the risks and uncertainties discussed in detail
Vertex Pharmaceuticals (VRTX - Free Report) came out with quarterly earnings of $4.73 per share, missing the Zacks Consensus Estimate of $4.79 per share. This compares to earnings of $4.52 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -1.25%. A quarter ago, it was expected that this drugmaker would post earnings of $4.23 per share when it actually produced earnings of $4.47, delivering a surprise of +5.67%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Vertex, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $3.33 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.32%. This compares to year-ago revenues of $2.96 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Vertex shares have added about 5.2% since the beginning of the year versus the S&P 500's gain of 9.4%.
What's Next for Vertex?While Vertex has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Vertex was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.94 on $3.34 billion in revenues for the coming quarter and $19.15 on $13.06 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Oculis Holding AG (OCS - Free Report) , has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly loss of $0.48 per share in its upcoming report, which represents a year-over-year change of +18.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Oculis Holding AG's revenues are expected to be $0.26 million, down 17.8% from the year-ago quarter.
For the quarter ended June 2026, Vertex Pharmaceuticals (VRTX - Free Report) reported revenue of $3.33 billion, up 12.5% over the same period last year. EPS came in at $4.73, compared to $4.52 in the year-ago quarter.
The reported revenue represents a surprise of +3.32% over the Zacks Consensus Estimate of $3.23 billion. With the consensus EPS estimate being $4.79, the EPS surprise was -1.25%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Vertex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Product revenues, net: $3.33 billion versus $3.24 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +13.2% change.Revenues by Product- ALYFTREK: $573.6 million versus $529.27 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +265.8% change.Revenues by Product- Trikafta/Kaftrio: $2.5 billion versus the four-analyst average estimate of $2.45 billion. The reported number represents a year-over-year change of -2.1%.Revenues by Product- Other CF product revenues: $137.1 million versus the four-analyst average estimate of $133.5 million. The reported number represents a year-over-year change of -41.9%.View all Key Company Metrics for Vertex here>>>
Shares of Vertex have returned -9.7% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Wall Street analysts forecast that Vertex Pharmaceuticals (VRTX - Free Report) will report quarterly earnings of $4.85 per share in its upcoming release, pointing to a year-over-year increase of 7.3%. It is anticipated that revenues will amount to $3.23 billion, exhibiting an increase of 8.8% compared to the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.9% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Vertex metrics that Wall Street analysts commonly model and monitor.
Analysts' assessment points toward 'Revenues- Product revenues, net' reaching $3.24 billion. The estimate points to a change of +10.1% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenues by Product- Other product revenues' should arrive at $133.50 million. The estimate indicates a change of -43.5% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Revenues by Product- Trikafta/Kaftrio' of $2.45 billion. The estimate points to a change of -3.9% from the year-ago quarter.
Analysts forecast 'Revenues by Product- ALYFTREK' to reach $529.27 million. The estimate indicates a change of +237.5% from the prior-year quarter.
View all Key Company Metrics for Vertex here>>>
Over the past month, shares of Vertex have returned -1.3% versus the Zacks S&P 500 composite's +1.9% change. Currently, VRTX carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Amundi lifted its holdings in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report) by 12.9% during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 1,472,496 shares of the pharmaceutical company’s stock after acquiring an additional 168,335 shares during the period. Amundi owned approximately 0.58% of Vertex Pharmaceuticals worth $657,528,000 as of its most recent filing with the SEC.
Other hedge funds have also bought and sold shares of the company. Norges Bank bought a new position in Vertex Pharmaceuticals during the 4th quarter worth $1,440,149,000. Victory Capital Management Inc. boosted its position in shares of Vertex Pharmaceuticals by 49.4% during the 4th quarter. Victory Capital Management Inc. now owns 3,356,766 shares of the pharmaceutical company’s stock worth $1,521,851,000 after acquiring an additional 1,109,200 shares in the last quarter. Capital Research Global Investors boosted its position in shares of Vertex Pharmaceuticals by 4.6% during the 4th quarter. Capital Research Global Investors now owns 17,316,344 shares of the pharmaceutical company’s stock worth $7,850,544,000 after acquiring an additional 763,063 shares in the last quarter. Life Cycle Investment Partners Ltd bought a new position in Vertex Pharmaceuticals in the fourth quarter valued at approximately $166,317,000. Finally, Arrowstreet Capital Limited Partnership increased its stake in Vertex Pharmaceuticals by 520.1% in the third quarter. Arrowstreet Capital Limited Partnership now owns 381,195 shares of the pharmaceutical company’s stock valued at $149,291,000 after acquiring an additional 319,725 shares during the last quarter. 90.96% of the stock is owned by institutional investors.
Insider Activity at Vertex Pharmaceuticals In other news, Director Sangeeta N. Bhatia sold 318 shares of Vertex Pharmaceuticals stock in a transaction on Monday, May 4th. The shares were sold at an average price of $423.73, for a total transaction of $134,746.14. Following the transaction, the director owned 4,924 shares in the company, valued at approximately $2,086,446.52. The trade was a 6.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ourania Tatsis sold 1,500 shares of the business’s stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $524.99, for a total transaction of $787,485.00. Following the completion of the sale, the executive vice president directly owned 45,321 shares in the company, valued at approximately $23,793,071.79. This represents a 3.20% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,874 shares of company stock valued at $8,707,966 in the last quarter. Insiders own 0.20% of the company’s stock.
Vertex Pharmaceuticals Trading Up 2.4% Shares of VRTX stock opened at $490.39 on Wednesday. The firm has a market capitalization of $124.46 billion, a price-to-earnings ratio of 29.09, a PEG ratio of 2.16 and a beta of 0.29. The business’s 50-day moving average price is $467.74 and its 200-day moving average price is $459.99. Vertex Pharmaceuticals Incorporated has a 12 month low of $362.50 and a 12 month high of $533.67.
Vertex Pharmaceuticals (NASDAQ:VRTX – Get Free Report) last released its quarterly earnings data on Monday, May 4th. The pharmaceutical company reported $4.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.23. Vertex Pharmaceuticals had a return on equity of 23.86% and a net margin of 35.51%.The company had revenue of $2.99 billion during the quarter, compared to the consensus estimate of $2.99 billion. During the same quarter in the prior year, the firm posted $4.06 earnings per share. The firm’s revenue was up 8.3% compared to the same quarter last year. On average, sell-side analysts predict that Vertex Pharmaceuticals Incorporated will post 17.01 earnings per share for the current fiscal year.
Analyst Ratings Changes Several equities research analysts have weighed in on the company. Weiss Ratings upgraded Vertex Pharmaceuticals from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, July 17th. UBS Group lifted their price target on Vertex Pharmaceuticals from $545.00 to $585.00 and gave the company a “buy” rating in a research note on Monday, July 13th. Truist Financial boosted their price target on Vertex Pharmaceuticals from $542.00 to $560.00 and gave the stock a “buy” rating in a report on Monday, July 13th. Sanford C. Bernstein dropped their price objective on Vertex Pharmaceuticals from $577.00 to $572.00 and set an “outperform” rating for the company in a research report on Tuesday, May 5th. Finally, Barclays raised their price objective on Vertex Pharmaceuticals from $607.00 to $615.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Twenty-two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, Vertex Pharmaceuticals currently has a consensus rating of “Moderate Buy” and an average price target of $559.61.
Read Our Latest Stock Analysis on VRTX
Vertex Pharmaceuticals Company Profile (Free Report)
Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.
Vertex’s marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.
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Vertex Pharmaceuticals (VRTX - Free Report) ended the recent trading session at $490.39, demonstrating a +2.38% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.21% for the day. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq lost 0.22%.
Coming into today, shares of the drugmaker had lost 4.13% in the past month. In that same time, the Medical sector lost 0.43%, while the S&P 500 gained 1.7%.
Analysts and investors alike will be keeping a close eye on the performance of Vertex Pharmaceuticals in its upcoming earnings disclosure. The company's earnings report is set to go public on August 3, 2026. The company is forecasted to report an EPS of $4.85, showcasing a 7.3% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $3.23 billion, showing a 8.78% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.15 per share and a revenue of $13.06 billion, signifying shifts of +4.08% and +8.83%, respectively, from the last year.
It is also important to note the 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, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. Right now, Vertex Pharmaceuticals possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Vertex Pharmaceuticals currently has a Forward P/E ratio of 25.01. This signifies a premium in comparison to the average Forward P/E of 20.22 for its industry.
It is also worth noting that VRTX currently has a PEG ratio of 1.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.55 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 92, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
Vertex Pharmaceuticals (VRTX - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this drugmaker have returned -4.1%, compared to the Zacks S&P 500 composite's +1.7% change. During this period, the Zacks Medical - Biomedical and Genetics industry, which Vertex falls in, has lost 3%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Vertex is expected to post earnings of $4.85 per share, indicating a change of +7.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.9% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $19.15 points to a change of +4.1% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $21.04 indicates a change of +9.9% from what Vertex is expected to report a year ago. Over the past month, the estimate has changed -0.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Vertex is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Vertex, the consensus sales estimate of $3.23 billion for the current quarter points to a year-over-year change of +8.8%. The $13.06 billion and $14.45 billion estimates for the current and next fiscal years indicate changes of +8.8% and +10.6%, respectively.
Last Reported Results and Surprise HistoryVertex reported revenues of $2.99 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $4.47 for the same period compares with $4.06 a year ago.
Compared to the Zacks Consensus Estimate of $2.98 billion, the reported revenues represent a surprise of +0.19%. The EPS surprise was +5.67%.
Over the last four quarters, Vertex surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Vertex is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Vertex. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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Vertex Pharmaceuticals (VRTX - Free Report) closed at $472.57 in the latest trading session, marking a -1.96% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. On the other hand, the Dow registered a loss of 0.01%, and the technology-centric Nasdaq decreased by 0.57%.
Shares of the drugmaker witnessed a gain of 2.9% over the previous month, trailing the performance of the Medical sector with its gain of 5.8%, and outperforming the S&P 500's gain of 0.25%.
Market participants will be closely following the financial results of Vertex Pharmaceuticals in its upcoming release. The company plans to announce its earnings on August 3, 2026. On that day, Vertex Pharmaceuticals is projected to report earnings of $4.85 per share, which would represent year-over-year growth of 7.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.23 billion, up 8.78% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $19.15 per share and a revenue of $13.06 billion, indicating changes of +4.08% and +8.83%, respectively, from the former year.
Any recent changes to analyst estimates for Vertex Pharmaceuticals should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. At present, Vertex Pharmaceuticals boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Vertex Pharmaceuticals is currently trading at a Forward P/E ratio of 25.17. This indicates a premium in contrast to its industry's Forward P/E of 19.23.
We can additionally observe that VRTX currently boasts a PEG ratio of 1.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.57.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 98, placing it within the top 40% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Andra AP fonden cut its holdings in shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report) by 33.5% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 23,903 shares of the pharmaceutical company’s stock after selling 12,037 shares during the quarter. Andra AP fonden’s holdings in Vertex Pharmaceuticals were worth $10,674,000 at the end of the most recent reporting period.
Other hedge funds also recently modified their holdings of the company. Norges Bank acquired a new stake in shares of Vertex Pharmaceuticals in the fourth quarter valued at about $1,440,149,000. Victory Capital Management Inc. boosted its position in Vertex Pharmaceuticals by 49.4% during the fourth quarter. Victory Capital Management Inc. now owns 3,356,766 shares of the pharmaceutical company’s stock valued at $1,521,851,000 after purchasing an additional 1,109,200 shares during the last quarter. Capital Research Global Investors grew its stake in Vertex Pharmaceuticals by 4.6% in the fourth quarter. Capital Research Global Investors now owns 17,316,344 shares of the pharmaceutical company’s stock valued at $7,850,544,000 after purchasing an additional 763,063 shares in the last quarter. Life Cycle Investment Partners Ltd bought a new position in Vertex Pharmaceuticals in the fourth quarter valued at approximately $166,317,000. Finally, Arrowstreet Capital Limited Partnership increased its position in shares of Vertex Pharmaceuticals by 520.1% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 381,195 shares of the pharmaceutical company’s stock worth $149,291,000 after purchasing an additional 319,725 shares during the last quarter. Institutional investors own 90.96% of the company’s stock.
Vertex Pharmaceuticals Price Performance VRTX stock opened at $482.00 on Wednesday. Vertex Pharmaceuticals Incorporated has a fifty-two week low of $362.50 and a fifty-two week high of $533.67. The stock has a market capitalization of $122.33 billion, a price-to-earnings ratio of 28.59, a PEG ratio of 2.09 and a beta of 0.29. The business’s fifty day moving average price is $464.12 and its two-hundred day moving average price is $459.39.
Vertex Pharmaceuticals (NASDAQ:VRTX – Get Free Report) last announced its earnings results on Monday, May 4th. The pharmaceutical company reported $4.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.23. Vertex Pharmaceuticals had a net margin of 35.51% and a return on equity of 23.86%. The company had revenue of $2.99 billion during the quarter, compared to analysts’ expectations of $2.99 billion. During the same quarter in the previous year, the business posted $4.06 earnings per share. Vertex Pharmaceuticals’s quarterly revenue was up 8.3% on a year-over-year basis. Research analysts expect that Vertex Pharmaceuticals Incorporated will post 17.01 EPS for the current year.
Wall Street Analyst Weigh In Several analysts have issued reports on the stock. Barclays upped their price target on shares of Vertex Pharmaceuticals from $607.00 to $615.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Morgan Stanley boosted their price objective on shares of Vertex Pharmaceuticals from $612.00 to $616.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 5th. Sanford C. Bernstein dropped their target price on shares of Vertex Pharmaceuticals from $577.00 to $572.00 and set an “outperform” rating on the stock in a report on Tuesday, May 5th. Truist Financial raised their target price on shares of Vertex Pharmaceuticals from $542.00 to $560.00 and gave the company a “buy” rating in a research note on Monday, July 13th. Finally, Canaccord Genuity Group reduced their price target on Vertex Pharmaceuticals from $437.00 to $436.00 and set a “hold” rating for the company in a report on Tuesday, May 5th. Twenty-two equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $559.61.
Get Our Latest Analysis on Vertex Pharmaceuticals
Insider Activity In other news, Director Sangeeta N. Bhatia sold 318 shares of the company’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $423.73, for a total transaction of $134,746.14. Following the completion of the sale, the director directly owned 4,924 shares in the company, valued at approximately $2,086,446.52. This represents a 6.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ourania Tatsis sold 1,500 shares of the business’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $524.99, for a total value of $787,485.00. Following the completion of the transaction, the executive vice president directly owned 45,321 shares of the company’s stock, valued at approximately $23,793,071.79. This trade represents a 3.20% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 18,874 shares of company stock worth $8,707,966. Insiders own 0.20% of the company’s stock.
Vertex Pharmaceuticals Profile (Free Report)
Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.
Vertex’s marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.
Featured Articles Five stocks we like better than Vertex Pharmaceuticals Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding VRTX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report).
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ABN Amro Investment Solutions boosted its position in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report) by 257.7% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 68,216 shares of the pharmaceutical company’s stock after buying an additional 49,146 shares during the quarter. ABN Amro Investment Solutions’ holdings in Vertex Pharmaceuticals were worth $30,461,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Assenagon Asset Management S.A. grew its position in shares of Vertex Pharmaceuticals by 9.1% during the 4th quarter. Assenagon Asset Management S.A. now owns 832,853 shares of the pharmaceutical company’s stock valued at $377,582,000 after buying an additional 69,150 shares during the last quarter. Allworth Financial LP lifted its holdings in shares of Vertex Pharmaceuticals by 414.1% in the 4th quarter. Allworth Financial LP now owns 14,036 shares of the pharmaceutical company’s stock worth $6,363,000 after purchasing an additional 11,306 shares during the last quarter. Calamos Advisors LLC lifted its holdings in shares of Vertex Pharmaceuticals by 77.1% in the 1st quarter. Calamos Advisors LLC now owns 77,886 shares of the pharmaceutical company’s stock worth $34,779,000 after purchasing an additional 33,917 shares during the last quarter. Sandro Wealth Management LLC acquired a new stake in Vertex Pharmaceuticals in the fourth quarter worth $1,436,000. Finally, Fideuram Intesa Sanpaolo Private Banking S.P.A. lifted its stake in Vertex Pharmaceuticals by 11.9% in the first quarter. Fideuram Intesa Sanpaolo Private Banking S.P.A. now owns 34,991 shares of the pharmaceutical company’s stock valued at $15,625,000 after buying an additional 3,710 shares during the last quarter. 90.96% of the stock is owned by hedge funds and other institutional investors.
Insiders Place Their Bets In related news, EVP Joy Liu sold 1,104 shares of the firm’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $425.02, for a total value of $469,222.08. Following the completion of the transaction, the executive vice president owned 20,729 shares of the company’s stock, valued at approximately $8,810,239.58. This trade represents a 5.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ourania Tatsis sold 1,500 shares of the business’s stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $524.99, for a total transaction of $787,485.00. Following the sale, the executive vice president directly owned 45,321 shares in the company, valued at approximately $23,793,071.79. This trade represents a 3.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 18,874 shares of company stock valued at $8,707,966 over the last 90 days. 0.20% of the stock is owned by corporate insiders.
Vertex Pharmaceuticals Stock Up 0.3% Shares of NASDAQ VRTX opened at $482.00 on Wednesday. The stock’s fifty day simple moving average is $464.12 and its 200 day simple moving average is $459.39. The stock has a market capitalization of $122.33 billion, a price-to-earnings ratio of 28.59, a PEG ratio of 2.09 and a beta of 0.29. Vertex Pharmaceuticals Incorporated has a 52-week low of $362.50 and a 52-week high of $533.67.
Vertex Pharmaceuticals (NASDAQ:VRTX – Get Free Report) last announced its earnings results on Monday, May 4th. The pharmaceutical company reported $4.47 EPS for the quarter, beating the consensus estimate of $4.24 by $0.23. Vertex Pharmaceuticals had a return on equity of 23.86% and a net margin of 35.51%.The business had revenue of $2.99 billion during the quarter, compared to the consensus estimate of $2.99 billion. During the same period in the prior year, the business posted $4.06 earnings per share. Vertex Pharmaceuticals’s revenue was up 8.3% compared to the same quarter last year. As a group, analysts anticipate that Vertex Pharmaceuticals Incorporated will post 17.01 earnings per share for the current year.
Wall Street Analysts Forecast Growth Several research firms have recently commented on VRTX. Truist Financial upped their price target on shares of Vertex Pharmaceuticals from $542.00 to $560.00 and gave the stock a “buy” rating in a research report on Monday, July 13th. Morgan Stanley lifted their price target on Vertex Pharmaceuticals from $612.00 to $616.00 and gave the company an “overweight” rating in a report on Tuesday, May 5th. Canaccord Genuity Group reduced their price objective on Vertex Pharmaceuticals from $437.00 to $436.00 and set a “hold” rating for the company in a research report on Tuesday, May 5th. UBS Group lifted their target price on Vertex Pharmaceuticals from $545.00 to $585.00 and gave the company a “buy” rating in a research note on Monday, July 13th. Finally, Barclays boosted their price target on Vertex Pharmaceuticals from $607.00 to $615.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Twenty-two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $559.61.
Check Out Our Latest Stock Analysis on VRTX
About Vertex Pharmaceuticals (Free Report)
Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.
Vertex’s marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.
Further Reading Five stocks we like better than Vertex Pharmaceuticals Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding VRTX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report).
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Amova Asset Management Americas Inc. lowered its stake in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report) by 66.5% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,115 shares of the pharmaceutical company’s stock after selling 4,199 shares during the period. Amova Asset Management Americas Inc.’s holdings in Vertex Pharmaceuticals were worth $944,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Norges Bank acquired a new position in shares of Vertex Pharmaceuticals during the fourth quarter worth about $1,440,149,000. Victory Capital Management Inc. raised its holdings in Vertex Pharmaceuticals by 49.4% in the fourth quarter. Victory Capital Management Inc. now owns 3,356,766 shares of the pharmaceutical company’s stock valued at $1,521,851,000 after acquiring an additional 1,109,200 shares in the last quarter. Capital Research Global Investors raised its holdings in Vertex Pharmaceuticals by 4.6% in the fourth quarter. Capital Research Global Investors now owns 17,316,344 shares of the pharmaceutical company’s stock valued at $7,850,544,000 after acquiring an additional 763,063 shares in the last quarter. Life Cycle Investment Partners Ltd purchased a new position in Vertex Pharmaceuticals in the fourth quarter worth approximately $166,317,000. Finally, Arrowstreet Capital Limited Partnership lifted its stake in Vertex Pharmaceuticals by 520.1% in the third quarter. Arrowstreet Capital Limited Partnership now owns 381,195 shares of the pharmaceutical company’s stock worth $149,291,000 after acquiring an additional 319,725 shares during the last quarter. Hedge funds and other institutional investors own 90.96% of the company’s stock.
Vertex Pharmaceuticals Stock Performance VRTX opened at $482.00 on Wednesday. Vertex Pharmaceuticals Incorporated has a one year low of $362.50 and a one year high of $533.67. The stock has a market capitalization of $122.33 billion, a P/E ratio of 28.59, a price-to-earnings-growth ratio of 2.09 and a beta of 0.29. The business’s 50-day simple moving average is $464.12 and its 200-day simple moving average is $459.39.
Vertex Pharmaceuticals (NASDAQ:VRTX – Get Free Report) last announced its earnings results on Monday, May 4th. The pharmaceutical company reported $4.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.23. The firm had revenue of $2.99 billion during the quarter, compared to analysts’ expectations of $2.99 billion. Vertex Pharmaceuticals had a return on equity of 23.86% and a net margin of 35.51%.The business’s revenue was up 8.3% on a year-over-year basis. During the same period in the prior year, the firm earned $4.06 EPS. On average, equities research analysts forecast that Vertex Pharmaceuticals Incorporated will post 17.01 EPS for the current fiscal year.
Analysts Set New Price Targets A number of brokerages have commented on VRTX. Canaccord Genuity Group dropped their price objective on shares of Vertex Pharmaceuticals from $437.00 to $436.00 and set a “hold” rating on the stock in a research report on Tuesday, May 5th. Weiss Ratings raised shares of Vertex Pharmaceuticals from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday. Morgan Stanley boosted their target price on shares of Vertex Pharmaceuticals from $612.00 to $616.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 5th. Wall Street Zen lowered Vertex Pharmaceuticals from a “buy” rating to a “hold” rating in a report on Sunday, June 28th. Finally, Truist Financial raised their price target on Vertex Pharmaceuticals from $542.00 to $560.00 and gave the company a “buy” rating in a research note on Monday, July 13th. Twenty-two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $559.61.
Read Our Latest Research Report on VRTX
Insider Buying and Selling In other news, EVP Ourania Tatsis sold 1,500 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $524.99, for a total value of $787,485.00. Following the completion of the sale, the executive vice president directly owned 45,321 shares of the company’s stock, valued at approximately $23,793,071.79. This represents a 3.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Joy Liu sold 1,104 shares of the firm’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $425.02, for a total transaction of $469,222.08. Following the transaction, the executive vice president owned 20,729 shares in the company, valued at approximately $8,810,239.58. This trade represents a 5.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,874 shares of company stock valued at $8,707,966 in the last 90 days. Company insiders own 0.20% of the company’s stock.
Vertex Pharmaceuticals Company Profile (Free Report)
Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.
Vertex’s marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.
Featured Articles Five stocks we like better than Vertex Pharmaceuticals Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible
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In the latest close session, Vertex Pharmaceuticals (VRTX - Free Report) was down 1.06% at $480.50. This change lagged the S&P 500's daily loss of 0.19%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 0.05%.
Shares of the drugmaker have appreciated by 7.53% over the course of the past month, outperforming the Medical sector's gain of 6.06%, and the S&P 500's gain of 0.55%.
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 August 3, 2026. The company's upcoming EPS is projected at $4.8, signifying a 6.19% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.22 billion, indicating a 8.48% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.15 per share and a revenue of $13.06 billion, representing changes of +4.08% and +8.81%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vertex Pharmaceuticals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Vertex Pharmaceuticals is presently trading at a Forward P/E ratio of 25.36. This denotes a premium relative to the industry average Forward P/E of 18.8.
Also, we should mention that VRTX has a PEG ratio of 1.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VRTX's industry had an average PEG ratio of 1.56 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Broderick Brian C grew its position in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report) by 8.5% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 18,656 shares of the pharmaceutical company’s stock after buying an additional 1,454 shares during the period. Vertex Pharmaceuticals makes up about 1.5% of Broderick Brian C’s investment portfolio, making the stock its 24th largest holding. Broderick Brian C’s holdings in Vertex Pharmaceuticals were worth $8,331,000 at the end of the most recent reporting period.
Several other hedge funds and other institutional investors have also recently made changes to their positions in VRTX. Nordea Investment Management AB boosted its position in shares of Vertex Pharmaceuticals by 23.8% during the fourth quarter. Nordea Investment Management AB now owns 447,169 shares of the pharmaceutical company’s stock valued at $202,612,000 after buying an additional 86,084 shares during the last quarter. Cooper Financial Group increased its holdings in Vertex Pharmaceuticals by 130.2% in the 4th quarter. Cooper Financial Group now owns 5,341 shares of the pharmaceutical company’s stock worth $2,421,000 after buying an additional 3,021 shares in the last quarter. Assenagon Asset Management S.A. raised its position in Vertex Pharmaceuticals by 9.1% in the 4th quarter. Assenagon Asset Management S.A. now owns 832,853 shares of the pharmaceutical company’s stock worth $377,582,000 after buying an additional 69,150 shares during the last quarter. Allworth Financial LP raised its position in Vertex Pharmaceuticals by 414.1% in the 4th quarter. Allworth Financial LP now owns 14,036 shares of the pharmaceutical company’s stock worth $6,363,000 after buying an additional 11,306 shares during the last quarter. Finally, Sandro Wealth Management LLC bought a new position in Vertex Pharmaceuticals during the 4th quarter valued at about $1,436,000. Institutional investors own 90.96% of the company’s stock.
Insider Transactions at Vertex Pharmaceuticals In other Vertex Pharmaceuticals news, CMO Carmen Bozic sold 6,988 shares of the company’s stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $450.00, for a total transaction of $3,144,600.00. Following the completion of the sale, the chief marketing officer directly owned 26,088 shares of the company’s stock, valued at approximately $11,739,600. This represents a 21.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ourania Tatsis sold 1,500 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $524.99, for a total transaction of $787,485.00. Following the completion of the transaction, the executive vice president owned 45,321 shares in the company, valued at $23,793,071.79. The trade was a 3.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 18,874 shares of company stock worth $8,707,966. 0.20% of the stock is currently owned by corporate insiders.
Vertex Pharmaceuticals Stock Performance VRTX stock opened at $485.65 on Monday. Vertex Pharmaceuticals Incorporated has a fifty-two week low of $362.50 and a fifty-two week high of $533.67. The business’s 50-day moving average is $462.54 and its two-hundred day moving average is $459.00. The company has a market cap of $123.26 billion, a price-to-earnings ratio of 28.80, a P/E/G ratio of 2.11 and a beta of 0.29.
Vertex Pharmaceuticals (NASDAQ:VRTX – Get Free Report) last released its quarterly earnings results on Monday, May 4th. The pharmaceutical company reported $4.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.23. The business had revenue of $2.99 billion during the quarter, compared to the consensus estimate of $2.99 billion. Vertex Pharmaceuticals had a return on equity of 23.86% and a net margin of 35.51%.The business’s quarterly revenue was up 8.3% compared to the same quarter last year. During the same period in the previous year, the company posted $4.06 EPS. Equities analysts predict that Vertex Pharmaceuticals Incorporated will post 17.01 earnings per share for the current year.
Wall Street Analyst Weigh In A number of analysts have recently issued reports on the stock. Truist Financial raised their price target on shares of Vertex Pharmaceuticals from $542.00 to $560.00 and gave the company a “buy” rating in a report on Monday, July 13th. Weiss Ratings raised shares of Vertex Pharmaceuticals from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday. Canaccord Genuity Group lowered their price objective on shares of Vertex Pharmaceuticals from $437.00 to $436.00 and set a “hold” rating on the stock in a research report on Tuesday, May 5th. Wall Street Zen cut shares of Vertex Pharmaceuticals from a “buy” rating to a “hold” rating in a report on Sunday, June 28th. Finally, Sanford C. Bernstein dropped their target price on shares of Vertex Pharmaceuticals from $577.00 to $572.00 and set an “outperform” rating on the stock in a report on Tuesday, May 5th. Twenty-two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $559.61.
Get Our Latest Stock Report on Vertex Pharmaceuticals
Vertex Pharmaceuticals Company Profile (Free Report)
Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.
Vertex’s marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.
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Boston Common Asset Management LLC grew its position in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report) by 7.0% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 17,205 shares of the pharmaceutical company’s stock after purchasing an additional 1,124 shares during the period. Boston Common Asset Management LLC’s holdings in Vertex Pharmaceuticals were worth $7,683,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds also recently modified their holdings of the company. Brighton Jones LLC grew its stake in shares of Vertex Pharmaceuticals by 15.0% during the 4th quarter. Brighton Jones LLC now owns 4,427 shares of the pharmaceutical company’s stock worth $1,783,000 after acquiring an additional 579 shares in the last quarter. Gamco Investors INC. ET AL bought a new stake in shares of Vertex Pharmaceuticals in the second quarter worth $228,000. NewEdge Advisors LLC boosted its holdings in Vertex Pharmaceuticals by 9.0% during the second quarter. NewEdge Advisors LLC now owns 11,929 shares of the pharmaceutical company’s stock worth $5,311,000 after purchasing an additional 986 shares during the last quarter. ICW Investment Advisors LLC boosted its holdings in Vertex Pharmaceuticals by 5.0% during the second quarter. ICW Investment Advisors LLC now owns 604 shares of the pharmaceutical company’s stock worth $269,000 after purchasing an additional 29 shares during the last quarter. Finally, Diversify Advisory Services LLC boosted its holdings in Vertex Pharmaceuticals by 26.3% during the second quarter. Diversify Advisory Services LLC now owns 7,291 shares of the pharmaceutical company’s stock worth $3,246,000 after purchasing an additional 1,518 shares during the last quarter. 90.96% of the stock is owned by institutional investors and hedge funds.
Analyst Ratings Changes VRTX has been the topic of several recent research reports. Royal Bank Of Canada lifted their price target on shares of Vertex Pharmaceuticals from $543.00 to $570.00 and gave the company an “outperform” rating in a research note on Tuesday, July 7th. Morgan Stanley increased their price objective on shares of Vertex Pharmaceuticals from $612.00 to $616.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 5th. Canaccord Genuity Group decreased their price objective on Vertex Pharmaceuticals from $437.00 to $436.00 and set a “hold” rating for the company in a report on Tuesday, May 5th. Truist Financial lifted their target price on Vertex Pharmaceuticals from $542.00 to $560.00 and gave the company a “buy” rating in a research report on Monday, July 13th. Finally, Barclays lifted their price target on Vertex Pharmaceuticals from $607.00 to $615.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Twenty-two equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $559.61.
Get Our Latest Analysis on Vertex Pharmaceuticals
Vertex Pharmaceuticals Price Performance VRTX stock opened at $485.65 on Monday. Vertex Pharmaceuticals Incorporated has a fifty-two week low of $362.50 and a fifty-two week high of $533.67. The stock has a market capitalization of $123.26 billion, a price-to-earnings ratio of 28.80, a PEG ratio of 2.11 and a beta of 0.29. The business’s fifty day moving average price is $462.54 and its two-hundred day moving average price is $459.00.
Vertex Pharmaceuticals (NASDAQ:VRTX – Get Free Report) last announced its earnings results on Monday, May 4th. The pharmaceutical company reported $4.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.23. Vertex Pharmaceuticals had a net margin of 35.51% and a return on equity of 23.86%. The company had revenue of $2.99 billion during the quarter, compared to analysts’ expectations of $2.99 billion. During the same quarter in the previous year, the business posted $4.06 earnings per share. Vertex Pharmaceuticals’s quarterly revenue was up 8.3% on a year-over-year basis. Research analysts expect that Vertex Pharmaceuticals Incorporated will post 17.01 EPS for the current year.
Insiders Place Their Bets In other news, EVP Duncan Mckechnie sold 1,541 shares of the firm’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $519.00, for a total transaction of $799,779.00. Following the transaction, the executive vice president directly owned 11,001 shares of the company’s stock, valued at approximately $5,709,519. This trade represents a 12.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sangeeta N. Bhatia sold 318 shares of Vertex Pharmaceuticals stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $423.73, for a total transaction of $134,746.14. Following the completion of the sale, the director owned 4,924 shares of the company’s stock, valued at approximately $2,086,446.52. The trade was a 6.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 18,874 shares of company stock worth $8,707,966. 0.20% of the stock is currently owned by insiders.
Vertex Pharmaceuticals Company Profile (Free Report)
Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.
Vertex’s marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.
Read More Five stocks we like better than Vertex Pharmaceuticals Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks Want to see what other hedge funds are holding VRTX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report).
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Assetmark Inc. lowered its stake in shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX – Free Report) by 33.7% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 59,954 shares of the pharmaceutical company’s stock after selling 30,529 shares during the quarter. Assetmark Inc.’s holdings in Vertex Pharmaceuticals were worth $26,772,000 at the end of the most recent reporting period.
Other large investors have also made changes to their positions in the company. Motiv8 Investments LLC bought a new stake in shares of Vertex Pharmaceuticals in the 4th quarter valued at approximately $26,000. Swiss RE Ltd. bought a new position in shares of Vertex Pharmaceuticals in the fourth quarter worth about $28,000. Eagle Bay Advisors LLC bought a new position in Vertex Pharmaceuticals in the 4th quarter worth approximately $29,000. IMG Wealth Management Inc. raised its position in shares of Vertex Pharmaceuticals by 277.8% during the fourth quarter. IMG Wealth Management Inc. now owns 68 shares of the pharmaceutical company’s stock worth $31,000 after acquiring an additional 50 shares during the last quarter. Finally, Ares Financial Consulting LLC bought a new stake in Vertex Pharmaceuticals during the 4th quarter worth about $33,000. Institutional investors and hedge funds own 90.96% of the company’s stock.
Insider Activity In related news, EVP Duncan Mckechnie sold 1,541 shares of the company’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $519.00, for a total transaction of $799,779.00. Following the completion of the transaction, the executive vice president directly owned 11,001 shares in the company, valued at $5,709,519. This represents a 12.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sangeeta N. Bhatia sold 318 shares of the firm’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $423.73, for a total transaction of $134,746.14. Following the completion of the sale, the director owned 4,924 shares in the company, valued at $2,086,446.52. This represents a 6.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 18,874 shares of company stock valued at $8,707,966. Corporate insiders own 0.20% of the company’s stock.
Vertex Pharmaceuticals Stock Performance NASDAQ:VRTX opened at $485.65 on Friday. The company has a market cap of $123.26 billion, a price-to-earnings ratio of 28.80, a PEG ratio of 2.11 and a beta of 0.29. Vertex Pharmaceuticals Incorporated has a fifty-two week low of $362.50 and a fifty-two week high of $533.67. The stock has a fifty day moving average price of $462.54 and a 200-day moving average price of $459.00.
Vertex Pharmaceuticals (NASDAQ:VRTX – Get Free Report) last posted its quarterly earnings results on Monday, May 4th. The pharmaceutical company reported $4.47 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.23. Vertex Pharmaceuticals had a return on equity of 23.86% and a net margin of 35.51%.The business had revenue of $2.99 billion during the quarter, compared to the consensus estimate of $2.99 billion. During the same quarter in the previous year, the firm earned $4.06 earnings per share. Vertex Pharmaceuticals’s revenue for the quarter was up 8.3% compared to the same quarter last year. Research analysts predict that Vertex Pharmaceuticals Incorporated will post 17.01 EPS for the current fiscal year.
Analysts Set New Price Targets Several research firms have weighed in on VRTX. Royal Bank Of Canada increased their target price on Vertex Pharmaceuticals from $543.00 to $570.00 and gave the company an “outperform” rating in a research note on Tuesday, July 7th. Truist Financial upped their price objective on Vertex Pharmaceuticals from $542.00 to $560.00 and gave the stock a “buy” rating in a research report on Monday, July 13th. Wall Street Zen downgraded Vertex Pharmaceuticals from a “buy” rating to a “hold” rating in a report on Sunday, June 28th. Weiss Ratings raised shares of Vertex Pharmaceuticals from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday. Finally, Sanford C. Bernstein decreased their price target on shares of Vertex Pharmaceuticals from $577.00 to $572.00 and set an “outperform” rating on the stock in a research note on Tuesday, May 5th. Twenty-two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $559.61.
Read Our Latest Stock Report on VRTX
Vertex Pharmaceuticals Company Profile (Free Report)
Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.
Vertex’s marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.
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Vertex Pharmaceuticals (VRTX - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this drugmaker have returned +3.9% over the past month versus the Zacks S&P 500 composite's +0.5% change. The Zacks Medical - Biomedical and Genetics industry, to which Vertex belongs, has gained 3.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Vertex is expected to post earnings of $4.80 per share, indicating a change of +6.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The consensus earnings estimate of $19.15 for the current fiscal year indicates a year-over-year change of +4.1%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $20.85 indicates a change of +8.9% from what Vertex is expected to report a year ago. Over the past month, the estimate has changed -1.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Vertex is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Vertex, the consensus sales estimate of $3.22 billion for the current quarter points to a year-over-year change of +8.5%. The $13.06 billion and $14.34 billion estimates for the current and next fiscal years indicate changes of +8.8% and +9.9%, respectively.
Last Reported Results and Surprise HistoryVertex reported revenues of $2.99 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $4.47 for the same period compares with $4.06 a year ago.
Compared to the Zacks Consensus Estimate of $2.98 billion, the reported revenues represent a surprise of +0.19%. The EPS surprise was +5.67%.
Over the last four quarters, Vertex surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Vertex is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Vertex. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest close session, Vertex Pharmaceuticals (VRTX - Free Report) was down 1.06% at $480.25. The stock fell short of the S&P 500, which registered a loss of 0.79% for the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 1.55%.
The drugmaker's stock has climbed by 9.09% in the past month, exceeding the Medical sector's gain of 5.5% and the S&P 500's gain of 4.28%.
Analysts and investors alike will be keeping a close eye on the performance of Vertex Pharmaceuticals in its upcoming earnings disclosure. The company's earnings report is set to go public on August 3, 2026. The company is forecasted to report an EPS of $4.79, showcasing a 5.97% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $3.22 billion, reflecting a 8.49% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.2 per share and revenue of $13.05 billion. These totals would mark changes of +4.35% and +8.71%, respectively, from last year.
Any recent changes to analyst estimates for Vertex Pharmaceuticals should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.32% rise in the Zacks Consensus EPS estimate. Vertex Pharmaceuticals is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Vertex Pharmaceuticals is presently trading at a Forward P/E ratio of 25.29. This signifies a premium in comparison to the average Forward P/E of 20.52 for its industry.
Investors should also note that VRTX has a PEG ratio of 1.84 right now. 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 the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.6.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 108, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
The first five months of 2026 were rough on Vertex Pharmaceuticals (VRTX 2.22%). The biotech's shares moved in the wrong direction through early June. However, the drugmaker has bounced back in style over the past month, with its stock gaining 10%. Vertex Pharmaceuticals is now up 9% this year and recently hit a fresh 52-week high. Is there more upside left for the stock? Let's find out.
Potential catalysts on the horizon Several recent developments explain why the market is increasingly excited about Vertex Pharmaceuticals' prospects. First, the company recently received a label expansion for Casgevy, a gene-editing medicine for sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT), two blood-related diseases. Casgevy is now indicated to treat patients as young as two who have TDT or SCD (it was previously approved for people 12 and older).
Image source: The Motley Fool.
This regulatory milestone adds 5,500 patients to Vertex's addressable market, but, even more importantly, it allows patients and their families to treat these diseases before they have had time to significantly impact their lives. Casgevy has not generated much revenue since its 2023 approval. This label expansion should help boost its sales. Second, Vertex Pharmaceuticals is awaiting approval for povetacicept, an investigational medicine for IgA nephropathy (IgAN), a kidney disease. U.S. regulators could give this therapy the green light by the end of November.
Povetacicept would be a key addition to Vertex's lineup. Given the more than 1.5 million IgAN patients worldwide and the medicine's potential approval across other indications, some analysts project it could reach peak sales of about $4.3 billion. Third, Vertex Pharmaceuticals has several other late-stage clinical trial candidates that could make good progress. For instance, the company is developing inaxaplin, a potential therapy for APOL-1-mediated kidney disease, and expects some data readouts later this year.
Lastly, Vertex Pharmaceuticals announced the acquisition of Crinetics Pharmaceuticals (CRNX 0.05%), a biotech company focused on developing medicines for endocrine diseases, for $10 billion in cash. Vertex estimates that this buyout adds more than $5 billion in potential peak annual sales to its lineup. All these developments make Vertex Pharmaceuticals' medium-term prospects attractive.
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The core business is still going strong Vertex Pharmaceuticals remains the leader in its core therapeutic area: developing medicines for patients with cystic fibrosis (CF). This rare disease causes thick mucus to form in the lungs, disrupting the airways and leading to chronic infections. Vertex remains the only game in town. It markets the only drugs that treat the underlying causes of CF. Though the biotech has been dominating this area for a long time, business is still good. In the first quarter, Vertex Pharmaceuticals' revenue increased by 8% year over year to $2.99 billion. The company's adjusted earnings per share climbed 10% year over year to $4.47.
Vertex Pharmaceuticals still has a decent patient population to address as it expands into new territories and earns new label expansions, especially for younger patients. The company's core business should remain a growth driver over the next decade, as its most important products won't face patent cliffs until the late 2030s. Even though some pharmaceutical companies are developing competing therapies, all previous attempts have failed. Successes may come, eventually, but that's also why Vertex has diversified its lineup.
The company's newer non-CF approvals, including Casgevy and Journavx, a medicine for acute pain, should start meaningfully contributing to top-line growth within a couple of years. Vertex expects at least $500 million in non-CF revenue this year. That will represent less than 5% of its revenue, but with Casgevy gaining traction thanks to label expansions and Journavx meeting strong demand for non-opioid pain drugs, they should post solid sales growth over the next few years. So, Vertex Pharmaceuticals still has plenty of upside ahead, even though it recently hit a new 52-week high. Investors can safely hold this stock for the long term.
Crinetics Pharmaceuticals (NASDAQ:CRNX | CRNX Price Prediction) shares have climbed 99% just this week, from $42.03 at Monday’s close, to $83.54 earlier today. The simple reason: Vertex Pharmaceuticals (NASDAQ:VRTX) agreed to acquire it.
Vertex’s $10 Billion All-Cash Bid Fuels the Surge The catalyst arrived after the market close on July 6: Vertex agreed to buy Crinetics for approximately $10 billion, or $85.00 per share in all cash. The transaction was unanimously approved by both boards and is expected to close in Q3 2026. Vertex plans to finance the deal with cash and debt.
The prize is Crinetics’ endocrine franchise. PALSONIFY (paltusotine), the first once-daily oral somatostatin receptor type 2 nonpeptide agonist for acromegaly, cleared the FDA in September 2025 and won European Commission approval in April 2026. Q1 2026 product sales hit $10.31 million, with 263 unique prescribers and roughly 70% of patients on reimbursed therapy. Behind PALSONIFY sits atumelnant, a Phase 3 candidate for congenital adrenal hyperplasia and ACTH-dependent Cushing’s syndrome. Vertex projects the acquired assets could deliver over $5 billion in peak annual sales and contribute earnings accretion by 2029.
Endocrine Peers Get a Re-Rating Look Vertex is stepping outside cystic fibrosis and building a fifth business group in endocrine diseases, and that validation puts a fresh spotlight on the small cluster of rare-disease specialists in the same neighborhood. Vertex shares themselves barely moved on the week, gaining 0.08% to $498.43, reflecting investor caution about the price tag.
The most direct competitive read-throughs are into Cushing’s syndrome and CAH. Neurocrine Biosciences (NASDAQ:NBIX) markets CRENESSITY (crinecerfont) for classic CAH, which posted $153.30 million in Q1 2026 revenue and overlaps directly with Crinetics’ atumelnant program. Neurocrine stock added 6.24% over the past week. Corcept Therapeutics (NASDAQ:CORT), whose relacorilant is in development for Cushing’s syndrome alongside its newly approved ovarian cancer indication Lifyorli, rose 5.04%. Ascendis Pharma (NASDAQ:ASND), an adjacent endocrine rare-disease peer with YORVIPATH and YUVIWEL, gained 3.51%.
Those moves arrive against a backdrop where a scaled acquirer just paid roughly $85 per share for a company whose analyst target sat at $83.73 and whose full-year 2026 revenue is pegged around $69 million. Investors sifting for the next endocrine tuck-in are exactly the audience that reads through to names like these, which is one reason breakout-driven M&A watchlists get updated after weeks like this one.
What to Watch With CRNX at $83.54 and Vertex’s cash offer fixed at $85.00, the arbitrage spread is narrow and the ceiling is defined. Absent a competing bid, upside from here is capped. Investors should track the expected Q3 2026 close plus any HSR or regulatory commentary – all of which will help us understand where things go from here.
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NEW YORK & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of Crinetics Pharmaceuticals, Inc. (NasdaqGS: CRNX) to Vertex Pharmaceuticals Incorporated (NasdaqGS: VRTX). Under the terms of the proposed transaction, shareholders of Crinetics will receive $85.00 in cash for each share of Crinetics that they own. KSF is seeking to determine whether this consideratio.
Vertex Pharmaceuticals (VRTX - Free Report) closed at $522.25 in the latest trading session, marking a -1.39% move from the prior day. This change lagged the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 1.16%.
The drugmaker's stock has climbed by 19.56% in the past month, exceeding the Medical sector's gain of 6.33% and the S&P 500's gain of 2.14%.
Market participants will be closely following the financial results of Vertex Pharmaceuticals in its upcoming release. The company is forecasted to report an EPS of $4.79, showcasing a 5.97% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.22 billion, up 8.46% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $19.15 per share and revenue of $13.03 billion, which would represent changes of +4.08% and +8.57%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vertex Pharmaceuticals. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Vertex Pharmaceuticals presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Vertex Pharmaceuticals is holding a Forward P/E ratio of 27.66. For comparison, its industry has an average Forward P/E of 21.91, which means Vertex Pharmaceuticals is trading at a premium to the group.
It's also important to note that VRTX currently trades at a PEG ratio of 2.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.73 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 158, placing it within the bottom 36% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
On CNBC’s Mad Dash segment on Monday, July 6, 2026, Jim Cramer made one of his most bullish biotech calls in years, arguing that the sector could be entering a new wave of mergers and acquisitions as the regulatory environment becomes more favorable for dealmaking.
“There is a move in biotech that we have not talked about at all that is really extraordinary, and particularly since the change at the head of the FDA,” Cramer said. “If you look at that chart, this is the group that’s the hottest group in the market.”
Cramer argued that takeover activity, which slowed under the previous administration after an Amgen acquisition nearly faced regulatory opposition, is poised to accelerate. Cramer noted that “we have now waited for so many companies because there have been so few takeovers under the previous administration because of an Amgen deal that was almost blocked,” and predicted that “these deals are going to be flooding the market according to my sources. And you want to be long biotech. I have not said that in ages.”
Why Eli Lilly Could Lead the Next Biotech Buying Spree Eli Lilly (NYSE:LLY | LLY Price Prediction) is one of the primary acquirers driving biotech M&A activity, thanks to its strong cash flow. The numbers back that up. Lilly reported Q1 2026 revenue of $19.80 billion, up 55.5% year over year, with Mounjaro sales of $8.66 billion and Zepbound U.S. sales of $4.16 billion. Lilly also raised full-year revenue guidance to $82.0 billion to $85.0 billion.
CEO David Ricks told investors the company “continued investing in Lilly’s future growth through four acquisitions” in the quarter, snapping up Orna Therapeutics, Centessa Pharmaceuticals, Kelonia Therapeutics and Ajax Therapeutics.
Gilead Is Already Executing the Strategy Cramer Described Gilead Sciences (NASDAQ:GILD) is running the playbook Cramer described. It closed the $7.8 billion Arcellx acquisition for Anito-cel in multiple myeloma and signed deals for Ouro Medicines ($1.675 billion upfront plus up to $500 million in milestones) and Tubulis.
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CEO Daniel O’Day said Gilead is “adding potentially best-in-disease assets and platforms in oncology and inflammation.” The company expects roughly $11.5 billion in acquired IPR&D charges, which pushed non-GAAP EPS guidance to a loss of $(1.05) to $(0.65).
Amgen: The Deal That Changed the Biotech M&A Landscape Amgen (NASDAQ:AMGN) posted Q1 2026 revenue of $8.62 billion, with 16 brands growing double digits, including IMDELLTRA at +219%. Its obesity candidate MariTide is advancing in multiple Phase 3 studies, keeping Amgen relevant in the category Lilly currently dominates.
Vertex and Regeneron: Confirmed-Data Franchises Cramer’s M&A logic focuses on companies close to or already holding confirmed drug data that command inflated acquisition prices. Vertex Pharmaceuticals (NASDAQ:VRTX) fits that mold. CASGEVY and JOURNAVX drove more than 25% of quarterly growth, and Vertex completed its rolling BLA submission for povetacicept in IgA nephropathy, opening a fourth franchise.
Regeneron Pharmaceuticals (NASDAQ:REGN) is playing offense with capital returns, authorizing a new $3.0 billion share repurchase after buying back $803 million in Q1 2026. Dupixent global sales hit $4.88 billion, up 33%, even as EYLEA faces biosimilar pressure.
The Biotech Catalysts That Could Spark More Takeovers Cramer’s thesis on biotech is that a friendlier regulatory backdrop could reopen the biotech acquisition market after years of subdued dealmaking. Companies with strong balance sheets, such as Eli Lilly and Gilead, are already actively acquiring promising drug developers, while mid-cap biotech firms with attractive late-stage assets could become the next takeover targets. If that trend continues, investors may begin valuing biotech companies for both their growth prospects and potential acquisition capabilities.
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Bala Cynwyd, Pennsylvania--(Newsfile Corp. - July 7, 2026) - Law office of Brodsky & Smith announces that it is investigating potential claims against the Board of Directors of Crinetics Pharmaceuticals, Inc. ("Crinetics Pharmaceuticals" or the "Company") (NASDAQ: CRNX) for possible breaches of fiduciary duty and other violations of federal and state law in connection with the sale of the Company to Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) for $85.00 per share in cash, for a total equity value of approximately $10.0 billion, or approximately $8.8 billion net of estimated cash acquired.
The investigation concerns whether the Crinetics Pharmaceuticals Board breached its fiduciary duties to shareholders by failing to conduct a fair process, including whether the proposed transaction is paying fair value to shareholders of the Company.
If you own shares of Crinetics Pharmaceuticals stock and wish to discuss the legal ramifications of the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire, or Marc L. Ackerman by email at [email protected], visit https://www.brodskysmith.com/cases/crinetics-pharmaceuticals-inc-nasdaq-crnx/, or call toll free 855-576-4847.
Brodsky & Smith is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304234
1. Vertex Buys Crinetics for Rare Disease Push Vertex Pharmaceuticals (VRTX +0.27%) is acquiring Crinetics Pharmaceuticals (CRNX 0.47%) for $10 billion, expanding beyond cystic fibrosis therapies and into endocrine diseases. The move could add up to $5 billion in annual revenue over the long term, although traders with a shorter-term focus pushed the stock down around 2% ahead of the market open.
"Crinetics is an excellent strategic fit for Vertex, with its focus on serious diseases in specialty markets with significant unmet need": Reshma Kewalramani, CEO and president of Vertex, praised the deal, while Crinetics founder and CEO Scott Struthers referred to it as a historic milestone. It's expected to contribute to Vertex's revenue immediately via the ongoing launch of the Palsonify medicine. Purchase helps to back up double-digit revenue growth ambitions: The growing need for therapeutics around endocrine diseases provides a clear runway for Vertex to scale in the coming years with Crinetics in the portfolio. Also recommended in Rule Breakers, the stock is outperforming the S&P 500 by 45% since the February 2022 Stock Advisor rec. 2. Synopsys Cuts Fab Tools for AI Focus Reuters reports Synopsys (SNPS +1.17%) is planning to stop offering some software used by semiconductor companies, instead looking to focus on other AI offerings carrying higher profit margins.
Pivot highlights the changing balance in the semiconductor software space: Chipmakers are increasingly building manufacturing software in-house, while vendors like Synopsys are targeting lucrative AI design technologies more. "The best is yet to come": Back in February, Fool analyst Yasser El-Shimy was upbeat about the outlook for this year following quarterly results, saying "in an AI world driving ever-complex chip designs, Synopsys' tools are essential." The stock is recommended by both Team Rule Breakers and Team Hidden Gems.
3. Bank ETF Hits Record High as Earnings Loom
U.S. banking stocks continue to outperform, with the Invesco KBW Bank ETF (KBWB +1.92%) reaching a new high yesterday, as the outlook for higher interest rates and strong earnings expectations aids traction.
Banking boom helping other companies: Bank of America (BAC +1.80%) rallied 2% to close at record highs, a move that benefits Berkshire Hathaway (BRKB 0.26%) since it is the largest shareholder aside from two index-fund investors. Optimism heading into earnings season next week: Most major U.S. banks are set to report Q2 earnings imminently, with Goldman Sachs (GS +3.36%), Morgan Stanley (MS +3.73%), and Bank of America all due to deliver double-digit revenue growth versus the same period last year.
4. Meta Slams Trillion-Dollar Lawsuit
Meta (META +3.12%) has revealed a $1.4 trillion potential penalty from the trial relating to allegedly violating the Children's Online Privacy Protection Act. It is being targeted by several U.S. states in court, with proceedings due to start next month.
"A sanction of that size has no analog in the history of consumer protection enforcement": Meta flagged the staggering compensation amount, which is close to the current market cap of the company. It strongly denies all allegations. Big Tech facing thousands of lawsuits in both federal and state courts: The precedent on this case will be watched by many other social media platforms, due to extensive claims around child protection and social media addiction complaints. 5. Today's Take: Borrowed Thinking, Better Investing
Some of my favorite investing maxims come from the world of sports. Listen to coaches and players – in any sport – and they'll tell you that results can vary but performance is controllable. Never confuse results with performance, Fool.-- Tim Beyers Team Rule Breakers
6. Your Take What investment principle took you the longest to learn, but has been incredibly valuable?
Discuss with friends and family, or become a member to hear what your fellow Fools are saying!
This image and article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. Bank of America is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends Berkshire Hathaway, Goldman Sachs Group, Meta Platforms, Synopsys, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
Crinetics and Vertex have entered into a definitive agreement under which Vertex will acquire Crinetics for $85 per share in cash, representing a total equity value of approximately $10 billion.
Crinetics Pharmaceuticals shares jumped 99.1% to $83.67 in pre-market trading.
Here are some other stocks moving in pre-market trading.
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Susie Lisa - Senior Vice President of Investor Relations
Reshma Kewalramani - CEO, President & Director
Duncan J. McKechnie - Chief Commercial Officer, Head of North America Commercial & Executive VP
Charles Wagner - Executive VP, COO & CFO
Conference Call Participants
Jessica Fye - JPMorgan Chase & Co, Research Division
Salveen Richter - Goldman Sachs Group, Inc., Research Division
Mario Joshua Chazaro Cortes - Evercore ISI Institutional Equities, Research Division
Andy Chen - Wolfe Research, LLC
Jarwei Fang - Citigroup Inc., Research Division
Evan Seigerman - BMO Capital Markets Equity Research
Michael Yee - UBS Investment Bank, Research Division
Nevin Varghese - RBC Capital Markets, Research Division
Philip Nadeau - TD Cowen, Research Division
Tazeen Ahmad - BofA Securities, Research Division
Brian Skorney - Robert W. Baird & Co. Incorporated, Research Division
Jasmine Fels - Barclays Bank PLC, Research Division
Carter Gould - Cantor Fitzgerald & Co., Research Division
Presentation
Operator
Good day, and welcome to the Vertex Pharmaceuticals conference call to announce the acquisition of Crinetics Pharmaceuticals.
[Operator Instructions]
Please note this event is being recorded. I would now like to turn the conference over to Ms. Susie Lisa. Please go ahead.
Susie Lisa
Senior Vice President of Investor Relations
Thanks, Chuck. Good afternoon, everyone, and thank you for joining us on short notice for this exciting announcement. I'm Susie Lisa, and as Senior Vice President of Investor Relations, it's my pleasure to welcome you to this conference call to discuss Vertex's acquisition of Crinetics Pharmaceuticals.
Making prepared remarks on today's call, we have Dr. Reshma Kewalramani, Vertex's CEO and President; Duncan McKechnie, Chief Commercial Officer; and Charlie Wagner, Chief Operating and Financial Officer. We recommend that you access the webcast slides as you listen to this call. The call is being recorded, and a replay will be available on our website. We will make forward-looking statements on
Crinetics Pharmaceuticals stock is soaring. What’s the outlook for CRNX shares? Vertex To Acquire CrineticsCrinetics and Vertex have entered into a definitive agreement under which Vertex will acquire Crinetics for $85 per share in cash, representing a total equity value of approximately $10 billion.
“Nearly 18 years ago, we founded Crinetics with a clear goal of transforming the lives of patients living with endocrine-related diseases. Today marks a historic milestone as we embark on this next chapter with Vertex,” said Scott Struthers, founder and CEO of Crinetics Pharmaceuticals.
“This partnership is anchored by a mutual commitment to science and a shared vision for delivering innovative treatments to patient communities that have long been underserved.”
The transaction has been unanimously approved by companies’ boards and is expected to close in the third quarter.
CRNX Shares SoarCRNX Price Action: Crinetics shares were up 101.36% in after-hours, trading at $84.69 at the time of publication on Monday, according to Benzinga Pro.
Image: Shutterstock.com
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No stock has generated more buzz in recent weeks than Space Exploration Technologies (SPCX +2.69%), more commonly known as SpaceX. That's understandable, considering the space technology and artificial intelligence (AI) innovator conducted the largest initial public offering (IPO) in history.
But buzz doesn't always translate to great returns (as many who bought SpaceX shares after its post-IPO surge are finding out). While SpaceX gets the headlines, some smart investors are loading up on another stock instead -- Vertex Pharmaceuticals (VRTX +6.13%).
Image source: Getty Images.
Greater market dominance than SpaceX One key reason investors have been attracted to SpaceX is its commanding position in the satellite internet services and rocket launch markets. However, Vertex arguably has greater market dominance in its core arena than SpaceX.
Only five therapies have been approved for addressing the underlying genetic cause of cystic fibrosis (CF), a rare genetic disease that affects an estimated 105,000 people worldwide. Vertex markets all of them, giving the drugmaker a virtual monopoly in the CF indication.
SpaceX will soon have a formidable competitor to its lucrative Starlink business from Amazon (AMZN +0.55%) Leo. Meanwhile, Vertex has little to worry about from challengers at this point. The most advanced experimental therapies that even have a shot at challenging Vertex's blockbuster CF franchise are only in Phase 2 clinical testing. No patent cliff is in sight that would open the door to serious generic threats, either. Vertex's key U.S. and European patents for its most powerful CF drug, Alyftrek, don't expire until 2039.
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CF isn't Vertex's only area of focus. The company has two other products gaining market momentum -- CRISPR gene-editing therapy Casgevy and non-opioid pain medication Journavx. These two therapies together generated roughly 25% of Vertex's product revenue growth in its latest quarter.
Importantly, Vertex's market dominance is much more profitable than SpaceX's. The big biotech company posted adjusted earnings of $4.7 billion last year, compared with SpaceX's net loss of $4.9 billion.
Transformative launches potentially on the way SpaceX completed 167 launches last year with its Falcon 9 rockets and Starship reusable spacecraft. However, Vertex has some potential launches of a different sort on the way that could be transformative.
The U.S. Food and Drug Administration (FDA) is scheduled to make an approval decision for povetacicept in the treatment of immunoglobulin A nephropathy (IgAN) by Nov. 30, 2026. IgAN affects around three times more patients in the U.S. and Europe alone than CF does worldwide. Vertex is also evaluating povetacicept in Phase 2 studies targeting primary membranous nephropathy and generalized myasthenia gravis, which together affect around three times as many patients in the U.S. and Europe as CF does worldwide.
Patient dosing in a late-stage study evaluating zimislecel in treating severe Type 1 Diabetes has resumed after a temporary delay while Vertex performed a manufacturing analysis. It seems likely that the company will file for global regulatory approvals of the therapy next year, assuming the Phase 3 results are positive.
Two other launches could be around the corner as well. Vertex expects to complete patient enrollment in two Phase 3 studies of suzetrigine (Journavx) in diabetic peripheral neuropathy (DPN) by the end of this year. Eventual approval in treating DPN would open up an additional patient population of around 2.5 million for Journavx.
And that's not all. Vertex's pipeline features another late-stage candidate, inaxaplin, which targets APOL1-mediated kidney disease (AMKD). This disease affects around 250,000 people, and there aren't any approved treatments for it.
Risks vs. rewards Every investment comes with potential risks and rewards. Vertex's approved products and promising pipeline offer clear rewards over the next few years. However, the company faces several risks, notably the possibility of regulatory setbacks and clinical failures.
But many investors could reasonably conclude that Vertex's overall risk-reward proposition is more appealing than SpaceX's. That's especially true given each stock's valuation. SpaceX's shares trade at a whopping 56.7 times projected 2026 sales. Vertex's forward price-to-sales multiple is around 10x.
Investing in SpaceX is tantamount to placing a bet on a future that hasn't arrived yet, with that future already baked into the space stock's valuation. Buying Vertex Pharmaceuticals, on the other hand, is more like betting on a future supported by prior clinical results that inspire confidence, with a share price that reflects some uncertainty. The latter seems like the smarter wager.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Vertex Pharmaceuticals (VRTX - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Vertex currently has an average brokerage recommendation (ABR) of 1.53, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 34 brokerage firms. An ABR of 1.53 approximates between Strong Buy and Buy.
Of the 34 recommendations that derive the current ABR, 25 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 73.5% and 5.9% of all recommendations.
Brokerage Recommendation Trends for VRTX
Check price target & stock forecast for Vertex here>>>
While the ABR calls for buying Vertex, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is VRTX a Good Investment?In terms of earnings estimate revisions for Vertex, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $19.15.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Vertex. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Vertex.
Index Dow Jones +1,14 % na 52899,42 b. S&P 500 -0,01 % na 7482,7 b. Nasdaq Composite -0,8 % na 25832,67 b.
Ve čtvrteční seanci se index Dow Jones udržel v kladných úrovních a připsal si zisk 1,14%, ale širší index S&P 500 neudržel zisk ze začátku obchodování, ale nakonec ztráty korigoval ke konci obchodního dne a uzavřel -0,01%. Citelněji oslabil technologický sektor, kde index Nasdaq Composite si odepsal -0,8%. Dolar na páru s eurempo reportu Změny pracovních míst silněji oslabil o -0,44% tj. 1,1427 USD/EUR. Lehká ropa WTI i přes oslabující dolar pokračovala v poklesu a dnes si odepsala -0,2% a dostala se k úrovni 68,5 USD/barel. Oslabující dolar dnes vyhovoval žlutému kovu, který zpevnil o 1,2% a zlato se tak dostalo k úrovni 4 132 USD/Troy. unci. Na celkovém poklesu indexu S&P 500 měl dnes největší zásluhu sektor Informační technologie se ztrátou -1,5%, dále Komunikační služby -0,8% a se stejným výsledkem Zbytná spotřeba -0,8%. Naopak většímu poklesu indexu byl dnes největší brzdou sektor Zdravotní péče se ziskem 2,6%, dále Nezbytná spotřeba 2,4% a také Utility 2,3%.
Index S&P 500 -0,01 % na 7482,7 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Zdravotní péče +2,6 % Informační technologie -1,5 % Nezbytná spotřeba +2,4 % Komunikační služby -0,8 % Utility +2,3 % Zbytná spotřeba -0,8 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Genuine Parts (GPC) +13 % Sandisk Corp (SNDK) -14 % Moderna (MRNA) +10 % Teradyne (TER) -14 % Honeywell Aerospace (HONA) +8,7 % KLA Corp (KLAC) -12 % Equifax (EFX) +6,1 % Flex (FLEX) -11 % Vertex Pharmaceuticals (VRTX) +6,0 % Corning (GLW) -11 %
Luboš Bedrník
Fio banka, a.s.
Prohlášení
Vertex Pharmaceuticals (VRTX - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this drugmaker have returned +16.9% over the past month versus the Zacks S&P 500 composite's -1.8% change. The Zacks Medical - Biomedical and Genetics industry, to which Vertex belongs, has gained 6.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Vertex is expected to post earnings of $4.79 per share for the current quarter, representing a year-over-year change of +6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The consensus earnings estimate of $19.15 for the current fiscal year indicates a year-over-year change of +4.1%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $21.19 indicates a change of +10.7% from what Vertex is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Vertex is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Vertex, the consensus sales estimate for the current quarter of $3.22 billion indicates a year-over-year change of +8.5%. For the current and next fiscal years, $13.03 billion and $14.28 billion estimates indicate +8.6% and +9.6% changes, respectively.
Last Reported Results and Surprise HistoryVertex reported revenues of $2.99 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $4.47 for the same period compares with $4.06 a year ago.
Compared to the Zacks Consensus Estimate of $2.98 billion, the reported revenues represent a surprise of +0.19%. The EPS surprise was +5.67%.
Over the last four quarters, Vertex surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Vertex is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Vertex. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Vertex Pharmaceuticals (VRTX - Free Report) ended the recent trading session at $491.34, demonstrating a +2.32% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.05%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.24%.
Shares of the drugmaker witnessed a gain of 7.19% over the previous month, beating the performance of the Medical sector with its gain of 4.42%, and the S&P 500's loss of 1.42%.
The investment community will be closely monitoring the performance of Vertex Pharmaceuticals in its forthcoming earnings report. The company's upcoming EPS is projected at $4.79, signifying a 5.97% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.22 billion, reflecting a 8.46% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.15 per share and revenue of $13.03 billion. These totals would mark changes of +4.08% and +8.57%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, there's been a 0.12% rise in the Zacks Consensus EPS estimate. Vertex Pharmaceuticals currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Vertex Pharmaceuticals is currently being traded at a Forward P/E ratio of 25.08. This denotes a premium relative to the industry average Forward P/E of 21.83.
Meanwhile, VRTX's PEG ratio is currently 1.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.61.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 39% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
In the latest trading session, Vertex Pharmaceuticals (VRTX - Free Report) closed at $475.12, marking a +1.43% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.1%. Elsewhere, the Dow saw an upswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.43%.
The drugmaker's stock has climbed by 7.45% in the past month, exceeding the Medical sector's gain of 1.97% and the S&P 500's loss of 1.34%.
Market participants will be closely following the financial results of Vertex Pharmaceuticals in its upcoming release. On that day, Vertex Pharmaceuticals is projected to report earnings of $4.79 per share, which would represent year-over-year growth of 5.97%. At the same time, our most recent consensus estimate is projecting a revenue of $3.22 billion, reflecting a 8.46% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.15 per share and a revenue of $13.03 billion, signifying shifts of +4.08% and +8.57%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Vertex Pharmaceuticals. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Right now, Vertex Pharmaceuticals possesses a Zacks Rank of #3 (Hold).
Investors should also note Vertex Pharmaceuticals's current valuation metrics, including its Forward P/E ratio of 24.47. For comparison, its industry has an average Forward P/E of 21.67, which means Vertex Pharmaceuticals is trading at a premium to the group.
It's also important to note that VRTX currently trades at a PEG ratio of 1.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.52.
The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 36% of all 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.
Vertex Pharmaceuticals (VRTX - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this drugmaker have returned +4.3%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Medical - Biomedical and Genetics industry, which Vertex falls in, has gained 0.9%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Vertex is expected to post earnings of $4.79 per share, indicating a change of +6% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $19.15 points to a change of +4.1% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $21.19 indicates a change of +10.7% from what Vertex is expected to report a year ago. Over the past month, the estimate has changed -0.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Vertex.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Vertex, the consensus sales estimate for the current quarter of $3.22 billion indicates a year-over-year change of +8.5%. For the current and next fiscal years, $13.03 billion and $14.28 billion estimates indicate +8.6% and +9.6% changes, respectively.
Last Reported Results and Surprise HistoryVertex reported revenues of $2.99 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $4.47 for the same period compares with $4.06 a year ago.
Compared to the Zacks Consensus Estimate of $2.98 billion, the reported revenues represent a surprise of +0.19%. The EPS surprise was +5.67%.
Over the last four quarters, Vertex surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Vertex is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Vertex. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
