Vertex Pharmaceuticals Incorporated (VRTX:NSD) Analysts Buy

STA Research
by: STA Research
Vertex Pharmaceuticals Incorporated stock

The average analyst target price for Vertex Pharmaceutical Incorporated over the next 12 months is USD 265.87, based on Vertex Pharmaceuticals Incorporated stock estimates from 11 analysts. The average analyst recommendation for Vertex Pharmaceuticals Incorporated is Buy. Vertex Pharmaceuticals Incorporated’s stock analysis by Stock Target Advisor is Bullish, with 10 positive signals and 4 negative signals. Vertex Pharmaceuticals Incorporated’s stock price was USD 290.93 at the latest close. The stock price of Vertex Pharmaceuticals Incorporated has changed by 18.54 percent in the last week, 54.45 percent in the last month, and 33.99 percent in the last year.

Vertex Pharmaceuticals Incorporated is a biotechnology business that focuses on discovering and commercializing cystic fibrosis treatments. The company’s goods are generally sold to specialty pharmacies and specialized distributors in the United States, as well as specialty distributors and retail chains in other countries, as well as hospitals and clinics. Vertex Pharmaceuticals Incorporated is based in Boston, Massachusetts, and was formed in 1989.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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