Vertex Pharmaceuticals Inc Shares Demonstrates Optimistic Rise

Vertex Pharmaceuticals Inc. shares progressed 2.29% to $200.50 Friday. This proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX rising 1.01% to 4,411.79 and the Dow Jones Industrial Average DJIA rising 0.68% to 35,061.55.

Vertex Pharmaceuticals Inc. closed $85.07 below its 52-week high ($285.57), which the company reached on July 27th. The stock outperformed some of its competitors Friday, as Johnson & Johnson JNJ rose 1.06% to $171.79, Merck & Co. Inc. MRK rose 1.32% to $77.54, and AbbVie Inc. ABBV rose 0.55% to $118.19.

Vertex Pharmaceuticals Inctrading volume (2.9 M) eclipsed its 50-day average volume of 2.4 M.The stock’s rise snapped a four-day losing streak. Vertex Pharmaceuticals share price has been drifting lower for the better part of a year, and is now 35% below the levels it was trading at in July last year. On Monday, Vertex announced that it was initiating a phase 2 clinical trial program for its VX-548 acute pain treatment, which may lead to renewed interest in the stock.

Vertex currently trades on a PE multiple of 19, which is lower than the biotech sector’s PE of 27.8 multiple. The broader market PE is also 19, while earnings growth for the market has been lower than it has for Vertex. This suggests that the weak share price performance may have built an opportunity for investors. EPS is anticipated to drop slightly in 2022 and then grow at an average rate of 36% in 2023 and 2024.