4-Star Stocks Poised to Pop: Vertex Pharmaceuticals

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug developer Vertex Pharmaceuticals (NAS: VRTX) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Vertex's business and see what CAPS investors are saying about the stock right now.

Vertex facts

Headquarters (founded)

Cambridge, Mass. (1989)

Market Cap

$8.5 billion

Industry

Biotechnology

Trailing-12-Month Revenue

$1.4 billion

Management

Dr. Jeffrey Leiden (since February 2012)
CFO Ian Smith (since October 2001)

Return on Equity (average, past 3 years)

(61.6%)

Cash/Debt

$968.9 million / $400.0 million

Competitors

Bristol-Myers Squibb
Merck
PTC Therapeutics

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 716 members who have rated Vertex believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, irishred1, succinctly summed up the bull case for our community:

Just gettin started -- looked at [price-to-sales] compared with [Alexion Pharmaceuticals] and this one has so much upside it astounds me. 2nd blockbuster Kalydeco coming along and then possible expansion to other [cystic-fibrosis] patients, combined with fact of all oral HCV treatments being tested and INCIVEK blockbuster profit machine for next couple years ... count me in.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Vertex may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Vertex. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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