To The Moon

$Vertex Pharmaceuticals(VRTX)$ is a biotech company focused on developing and commercializing therapies for Cystic Fibrosis (CF). The company portfolio includes products like TRIKAFTA/KAFTRIO, SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO. Its pipeline covers treatments for CF, pain, sickle cell disease, beta thalassemia, AAT deficiency, Type 1 Diabetes, and cancer.

On 11 December 2023, Vertex Pharmaceuticals (VRTX) presented positive and durable results for CASGEVY™, a CRISPR/Cas9 gene-edited therapy, in global trials for sickle cell disease and transfusion-dependent beta-thalassemia, with FDA approval for severe SCD and ongoing investigation for TDT.

The European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion for the conditional approval of CASGEVY. This should bode well for the company.

Vertex Pharmaceuticals (VRTX) Past and Expected Earnings

Vertex Pharmaceuticals (VRTX)’s trailing-12-month cash per share of $43.09 is significantly higher than the industry average of $1.21. Its trailing-12-month EBIT and levered FCF margins of 45.67% and 40.60% are significantly higher than the industry averages of 0.81% and 0.29%, respectively.

In the fiscal third quarter that ended September 30, 2023, Vertex Pharmaceuticals (VRTX)’s net product revenues stood at $2.48 billion, up 6.4% year-over-year, while non-GAAP operating income stood at $1.17 billion.

For the same quarter, non-GAAP net income and non-GAAP net income per common share increased 2.3% and 1.7% from the prior-year quarter to $1.06 billion and $4.08, respectively. As of 30 September 2023, 2023, Vertex Pharmaceuticals (VRTX)’s total current assets came at $14.70 billion, compared to $13.23 billion as of 31 December 2022.

For the fiscal fourth quarter ending December 2023, market is expecting Vertex Pharmaceuticals (VRTX)’s revenue and EPS to increase 9.4% and 8.5% year-over-year to $2.52 billion and $4.08, respectively. The company surpassed consensus EPS estimates in each of the trailing four quarters.

The stock has gained 40.3% year-to-date to close the last trading session at $406.89 on 29 Dec 2023. Over the past nine months, it has gained 36.1%.

Vertex Pharmaceuticals (VRTX) Stock Summary

With a market capitalization of $105,047,126,789, Vertex Pharmaceuticals (VRTX) has a greater market value than 97.69% of US stocks.

With a one year PEG ratio of 459.3, Vertex Pharmaceuticals (VRTX) is expected to have a higher PEG ratio (a measure of how expensive a stock is relative to its expected earnings growth) than 92.61% of US stocks.

In terms of volatility of its share price, Vertex Pharmaceuticals (VRTX) is more volatile than just 6.99% of stocks we're observing.

Stocks that are quantitatively similar to Vertex Pharmaceuticals (VRTX), based on their financial statements, market capitalization, and price volatility, are $Micron Technology(MU)$ $Regeneron Pharmaceuticals(REGN)$ $Applied Materials(AMAT)$

Vertex Pharmaceuticals (VRTX) Valuation Summary

Vertex Pharmaceuticals (VRTX)'s price/sales ratio is 10.8; this is 440% higher than that of the median Healthcare stock. Over the past 243 months, Vertex Pharmaceuticals (VRTX)'s price/sales ratio has gone up 3.4.

Vertex Pharmaceuticals (VRTX) Growth Metrics

Vertex Pharmaceuticals (VRTX) year over year revenue growth rate is now at 23.89%. Its 2 year net cashflow from operations growth rate is now at 30.02%.

The year over year net income to common stockholders growth rate now stands at -11.26%. Over the past 34 months, Vertex Pharmaceuticals (VRTX)'s revenue has gone up $4,111,207,000.

Technical Indicator - 50-day MA period

After looking at the fundamentals, Vertex Pharmaceuticals (VRTX) actually is trading well above the 50-day MA period, and there are signs of some pullback.

While we await for its Q4 2023 financial results, there might be a period of pullback when market go into a small correction, I would feel that is a good time to take advantage and buy into this opportunity.

Technical Indicator - RSI (Relative Strength Index)

As we can see from the RSI, Vertex Pharmaceuticals (VRTX) is toying around the tip of the overbought region, this could indicate that traders and investors might be holding some thoughts of whether to move into buying.

I believe the interest and sentiment for Vertex Pharmaceuticals (VRTX) should be coming this week when market open today (02 Jan 2024).

Summary

Based on what I have gathered, I believe there is a chance that Vertex Pharmaceuticals (VRTX) might experience some interest increase prior to its Q4 2023 earnings release.

The focus now are on the Bio-tech stocks, one of the strongest one which I believe for long term is Vertex Pharmaceuticals (VRTX).

I will be monitoring on how Vertex Pharmaceuticals (VRTX) would be trading this week before I plan for an entry price,

Appreciate if you could share your thoughts in the comment section whether you think Vertex Pharmaceuticals (VRTX) would present us with an opportunity to buy and take advantage of its upside.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.