Vertex Stock Buy Hold or Sell Recommendation

VRTX
 Stock
  

USD 299.33  5.04  1.71%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Vertex Pharmaceutic is 'Strong Buy'. Macroaxis provides Vertex Pharmaceutic buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding VRTX positions. The advice algorithm takes into account all of Vertex Pharmaceutic's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Vertex Pharmaceutic's buy-and-hold perspective. Also, please take a look at Vertex Pharmaceutic Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Vertex and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Vertex Pharmaceutic.

Execute Vertex Pharmaceutic Buy or Sell Advice

The Vertex recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Vertex Pharmaceutic. Macroaxis does not own or have any residual interests in Vertex Pharmaceutic or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Vertex Pharmaceutic's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Vertex PharmaceuticBuy Vertex Pharmaceutic
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Inapplicable
Details

Reporting Quality (M-Score)

Details
For the selected time horizon Vertex Pharmaceutic has a Risk Adjusted Performance of 0.1514, Jensen Alpha of 0.1599, Total Risk Alpha of 0.1029, Sortino Ratio of 0.0767 and Treynor Ratio of 0.2521
Macroaxis provides recommendation on Vertex Pharmaceutic to complement and cross-verify current analyst consensus on Vertex Pharmaceutic. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Vertex Pharmaceutic is not overpriced, please validate all Vertex Pharmaceutic fundamentals, including its total debt, earnings per share, and the relationship between the net income and book value per share . Given that Vertex Pharmaceutic has a number of shares shorted of 3.42 M, we advise you to double-check Vertex Pharmaceutic market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Vertex Pharmaceutic Trading Alerts and Improvement Suggestions

Vertex Pharmaceutic is unlikely to experience financial distress in the next 2 years
Over 95.0% of the company outstanding shares are owned by institutional investors
Latest headline from stocknews.com: NATR 2 High-Quality Stocks to Buy Amid Market Volatility - StockNews.com

Vertex Pharmaceutic current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Vertex analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Vertex analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price303.93
Target Median Price302.50
Target High Price389.00
Recommendation Mean2.10
Number Of Analyst Opinions26
Target Low Price250.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Vertex Pharmaceutic Returns Distribution Density

The distribution of Vertex Pharmaceutic's historical returns is an attempt to chart the uncertainty of Vertex Pharmaceutic's future price movements. The chart of the probability distribution of Vertex Pharmaceutic stock daily returns describes the distribution of returns around its average expected value. We use Vertex Pharmaceutic price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Vertex Pharmaceutic returns is essential to provide solid investment advice for Vertex Pharmaceutic.
Mean Return0.24Value At Risk-3.62
Potential Upside3.77Standard Deviation2.04
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Vertex Pharmaceutic historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Vertex Pharmaceutic Cash Flow Accounts

201720182019202020212022 (projected)
Net Cash Flow from Financing68.4 M(71.22 M)126.77 M(505.28 M)(1.48 B)(1.52 B)
Net Cash Flow from Investing(437.68 M)(202.16 M)(1.24 B)99.39 M(340.9 M)(367.81 M)
Net Cash Flow from Operations844.94 M1.27 B1.57 B3.25 B2.64 B2.85 B

Vertex Pharmaceutic Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Vertex Pharmaceutic or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Vertex Pharmaceutic's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Vertex stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.16
β
Beta against DOW0.92
σ
Overall volatility
1.95
Ir
Information ratio 0.08

Vertex Pharmaceutic Volatility Alert

Vertex Pharmaceutic currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.16. However, we advise investors to further question Vertex Pharmaceutic expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Vertex Pharmaceutic's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Vertex Pharmaceutic's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Vertex Pharmaceutic Implied Volatility

Vertex Pharmaceutic's implied volatility exposes the market's sentiment of Vertex Pharmaceutic stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Vertex Pharmaceutic's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Vertex Pharmaceutic stock will not fluctuate a lot when Vertex Pharmaceutic's options are near their expiration.

Vertex Pharmaceutic Fundamentals Vs Peers

Comparing Vertex Pharmaceutic's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Vertex Pharmaceutic's direct or indirect competition across all of the common fundamentals between Vertex Pharmaceutic and the related equities. This way, we can detect undervalued stocks with similar characteristics as Vertex Pharmaceutic or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Vertex Pharmaceutic's fundamental indicators could also be used in its relative valuation, which is a method of valuing Vertex Pharmaceutic by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Vertex Pharmaceutic to competition
FundamentalsVertex PharmaceuticPeer Average
Return On Equity30.24 %(0.31) %
Return On Asset14.05 %(0.14) %
Profit Margin38.26 %(1.27) %
Operating Margin39.09 %(5.51) %
Current Valuation67.13 B16.62 B
Shares Outstanding256.46 M571.82 M
Shares Owned by Insiders0.24 %10.09 %
Shares Owned by Institutions94.80 %39.21 %
Number of Shares Shorted3.42 M4.71 M
Price to Earning24.34 X28.72 X
Price to Book6.50 X9.51 X
Price to Sales9.31 X11.42 X
Revenue8.35 B9.43 B
Gross Profit3.62 B27.38 B
EBITDA3.26 B3.9 B
Net Income3.19 B570.98 M
Cash and Equivalents9.25 B2.7 B
Cash per Share36.08 X5.01 X
Total Debt847.3 M5.32 B
Debt to Equity0.07 %48.70 %
Current Ratio4.50 X2.16 X
Book Value Per Share46.61 X1.93 K
Cash Flow from Operations4.02 B971.22 M
Short Ratio2.31 X4.00 X
Earnings Per Share12.45 X3.12 X
Price to Earnings To Growth2.54 X4.89 X
Number of Employees3.9 K18.84 K
Beta0.45-0.15
Market Capitalization77.71 B19.03 B
Total Asset2.5 B29.47 B
Retained Earnings(6.34 B)9.33 B
Working Capital900.8 M1.48 B
Current Asset1.41 B9.34 B
   Sale by Liu Joy of 300 shares of Vertex Pharmaceutic [view details]

Vertex Pharmaceutic Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Vertex . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Vertex Pharmaceutic Buy or Sell Advice

When is the right time to buy or sell Vertex Pharmaceutic? Buying financial instruments such as Vertex Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables633.52 M885.35 M1.14 B1.23 B
Inventories167.5 M280.78 M353.1 M380.98 M

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In addition to having Vertex Pharmaceutic in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Also, please take a look at Vertex Pharmaceutic Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Vertex Pharmaceutic information on this page should be used as a complementary analysis to other Vertex Pharmaceutic's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Piotroski F Score module to get Piotroski F Score based on binary analysis strategy of nine different fundamentals.

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Is Vertex Pharmaceutic's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Vertex Pharmaceutic. If investors know Vertex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Vertex Pharmaceutic listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
11.1
Market Capitalization
75.5 B
Quarterly Revenue Growth YOY
0.23
Return On Assets
0.14
Return On Equity
0.3
The market value of Vertex Pharmaceutic is measured differently than its book value, which is the value of Vertex that is recorded on the company's balance sheet. Investors also form their own opinion of Vertex Pharmaceutic's value that differs from its market value or its book value, called intrinsic value, which is Vertex Pharmaceutic's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vertex Pharmaceutic's market value can be influenced by many factors that don't directly affect Vertex Pharmaceutic's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vertex Pharmaceutic's value and its price as these two are different measures arrived at by different means. Investors typically determine Vertex Pharmaceutic value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vertex Pharmaceutic's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.