Using projections from 16 individual sell-side analysts polled by Zacks Research, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) has a current quarter EPS consensus estimate of 1.01. Going back to the previous reporting period, the company posted a quarterly EPS of 1.26. As earnings season comes into focus, investors will be closely monitoring analyst estimates leading up to the report. Sell-side analysts often provide updates prior to and after the company reports. Following analyst revisions leading up to the earnings release may provide some good insight into the direction that the most recent estimates are trending. Investors will be watching to see which companies post the largest earnings beats or misses. Even if a company reports a large earnings beat or miss, there is still no guarantee that the stock will move as expected following the results. Many investors will choose to sit tight until after the post earnings volatility has subsided.
Investors may be trying to gauge the current business cycle phase and how that could potentially impact the portfolio. Business cycles can be one way to analyze portfolio performance. Early on in the cycle, profits tend to grow rapidly, sales tend to improve, and activity rebounds. In the middle of a cycle, growth may be peaking, strong credit growth may still be seen, and policy may swing neutral. Toward the later stages, growth may be moderate, earnings may come under pressure, and credit may tighten. Heading into a period of recession, credit may completely dry up, profits may decline sharply, and there may be policy easing. Investors will often have to adjust portfolio holdings that reflect the current state of a business cycle.
Equity analysts will routinely provide stock price target projections. Many investors are highly interested in where the analysts view the stock heading in the future. Presently, analysts polled by Zacks Research have set a consensus target price of $211.14 on shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). Price target estimates can be calculated using different methods, and they may vary depending on the individual analyst. A thoroughly researched analyst report will typically provide detailed reasoning for a specific target price estimate. Some investors may track analyst targets very closely and use the data to complement their own stock analysis.
Watching stock price activity for Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), we have spotted shares trading close to the 178.39 level. Investors will often monitor stock price levels relative to its 52-week high and low marks. The 52-week high is currently 194.7, and the 52-week low is presently 151.91. When a stock price is nearing the 52-week high or 52-week low, investors may closely follow activity to watch for a breach. Over the past 12 weeks, shares have moved 4.99%. Moving back to the start of the year, we can see that shares have changed 7.65%. Zooming in to the past 4 weeks, shares have seen a change of -2.66%. Over the last week, the stock has moved 5.21%.
Focusing in on analyst opinions, we note that the current average broker recommendation on shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is presently 1.72. The recommendation falls on a scale between 1 and 5. A broker rating of 1 would translate into a Strong Buy. A rating of 5 would indicate a Strong Sell recommendation. This consensus broker rating may help shed some light on how the sell-side is currently viewing company stock. Based on sell-side analysts polled by Zacks Research, 11 have rated the stock a Strong Buy or Buy.
Stock market investing can indeed tug on an individual’s emotional strings. When the market becomes tumultuous, investors may be tempted to act impulsively, or they may freeze and not act at all. Being prepared for various scenarios may help the investor better deal with the market when the time comes. Staying disciplined with portfolio rebalancing and asset allocation may be a big help for the individual investor. Investors who constantly try to outguess the market and chase winners may eventually find themselves swimming upstream. Staying the course and keeping a logical perspective may assist the investor with making the tricky portfolio decisions when necessary.
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