Trade-Ideas LLC identified

Vertex Pharmaceuticals

(

VRTX

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Vertex Pharmaceuticals as such a stock due to the following factors:

  • VRTX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $299.2 million.
  • VRTX is down 3.2% today from today's close.

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More details on VRTX:

Vertex Pharmaceuticals Incorporated engages in discovering, developing, manufacturing, and commercializing small molecule drugs for patients with serious diseases in specialty markets. Currently there are 8 analysts that rate Vertex Pharmaceuticals a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Vertex Pharmaceuticals has been 1.9 million shares per day over the past 30 days. Vertex has a market cap of $22.6 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.42 and a short float of 1.9% with 1.26 days to cover. Shares are down 26.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vertex Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, VERTEX PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • VRTX has underperformed the S&P 500 Index, declining 24.00% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • VERTEX PHARMACEUTICALS INC has improved earnings per share by 45.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VERTEX PHARMACEUTICALS INC reported poor results of -$3.14 versus -$2.29 in the prior year. This year, the market expects an improvement in earnings (-$1.10 versus -$3.14).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Biotechnology industry average. The net income increased by 44.0% when compared to the same quarter one year prior, rising from -$170.06 million to -$95.15 million.
  • Net operating cash flow has increased to -$47.02 million or 46.34% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 0.88%.

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