Sign In  |  Register  |  About Corte Madera  |  Contact Us

Corte Madera, CA
September 01, 2020 10:27am
7-Day Forecast | Traffic
  • Search Hotels in Corte Madera

  • ROOMS:

The Bullish Case for Vertex Pharmaceuticals (VRTX)

An ascending triangle pattern has formed in the chart of Vertex Pharmaceuticals (VRTX) chart. This is a bullish pattern, so the stock could soon experience a breakout. Read more to learn how to profit from this trade.

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.

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.

Click here to checkout our Healthcare Sector Report for 2021

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:

  Chart of VRTX provided by TradingView

Over the past two months, VRTX has repeatedly hit $220 as resistance (red), while also forming a clear trend line of support (green). Together, these two lines have created an ascending triangle on VRTX.

A long trade could be made on a break above the $220 resistance.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT


VRTX shares rose $2.31 (+1.08%) in premarket trading Monday. Year-to-date, VRTX has declined -8.88%, versus a 8.23% rise in the benchmark S&P 500 index during the same period.

About the Author: Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing.


The post The Bullish Case for Vertex Pharmaceuticals (VRTX) appeared first on
Data & News supplied by
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Copyright © 2010-2020 & California Media Partners, LLC. All rights reserved.