The Bullish Case for Vertex Pharmaceuticals (VRTX)

by Christian Tharp, CMT

Over the 3-day weekend I was analyzing charts and noticed an ascending triangle pattern in Vertex Pharmaceuticals Inc.’s (VRTX) chart.  This is a bullish pattern, which means the stock could soon experience a breakout…

Vertex Pharmaceuticals Inc. (VRTX) discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta for cystic fibrosis, where its therapies are the standard of care globally.

The company’s sales last year were driven by a fast adoption of Trikafta. The drug holds the key to VRTX’s long-term growth as it has the potential to treat close to 90% of cystic fibrosis patients. The company has consistently received regulatory approvals for the drug that has expanded its eligible population.

VRTX currently has a current ratio of 4.3, which indicates it has more than enough liquidity to handle short-term debt obligations. The company is also highly profitable with a net profit margin of 43.7%.

The company has seen both its revenue and earnings soar over the past year. Sales are up 28.8%, while earnings rose 78.5% over the past year. Even with all that growth, its stock is still trading at a reasonable valuation with a trailing P/E of 20.88 and a forward P/E of 18.83.

Though the stock has shown mixed performance as it’s down 10% for the year, but has still shown a recent uptrend.

Take a look at the 1-year chart of VRTX below with my added notations…

See chart and continue reading at

‘If you’re looking for free trading resources… click here’

Good luck!

Christian Tharp, CMT 

Our Experts Found 9 Stocks You Will Hold Forever

With individual stock selection now more critical than ever, this report is designed to bring you some of our top ideas for the year ahead. One of the companies highlighted in this report controls the smartphone market and now has its sights set on owning a bigger technology. It has the potential to be the most valuable stock in the history of investing. You need to find out the name of this company before the rest of the market does. This Report Is Completely Free, Download Your Copy Today

Interested in events that actually move the market?Awesome!

Let us send you a recap of every weeks market movers!

Better yet…Receive ALERTS
of Market Moving Events…
seconds after they surface!

  • Mergers & Acquisitions
  • Clinical Trials
  • Contract Awards
  • Stock Repurchase Programs
  • Earnings Announcement

Get Started