Highly rated Vertex Pharmaceuticals continues to trade near its all-time high. Even better, it's rising again toward that benchmark. On Tuesday the Relative Strength (RS) Rating for Vertex stock headed into a new percentile, as it got a lift from 66 to 72.
The upgraded Relative Strength Rating shows that Vertex stock tops 72% of all stocks for price performance over the past 52 weeks. Research shows that the best-performing stocks tend to have an RS Rating above 80 in the early stages of their moves. It's quickly rising toward that major milestone.
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Vertex makes drugs to treat cystic fibrosis, a disease that affects a person's glands including ones that protect the airways, and digestive track. Its drug portfolio also includes treatments for sickle cell disease and beta thalassemia.
Vertex Stock Is A Top 3 Percenter
Other key ratings for the Boston-based company shine even brighter. It boasts a 97 Earnings Per Share Rating out of 99. Its Composite Rating, a mix of IBD's five primary ratings, is also an outstanding 97, putting it in the top 3% of stocks overall.
The drugmaker's SMR Rating (sales + profit margins + return on equity) is a best-possible A, reflecting sound fundamentals. Finally, its B- Accumulation/Distribution Rating shows that institutional investors like mutual funds are buying more of its shares than selling.
Vertex stock is trying to complete a cup without handle with a 448.40 buy point. It rose to 448.40, its all-time high, on Jan. 30 in strong volume. From there it consolidated, falling to 391.01 on April 18, and started climbing again.
On Tuesday Vertex traded around 423, about 25 points below the high. See if the stock can clear the breakout price in volume at least 40% above average. It rose seven trading sessions in a row before Tuesday's trading.
Strong, Improving Sales, Profit Growth
Taking a look at top and bottom line numbers, Vertex Pharmaceuticals posted rising EPS growth in each of the last two reports. Top line growth has also increased over the same time frame. Last quarter Vertex reported a 56% surge in earnings to $4.76 per share on 13% higher revenue to $2.69 billion.
Vertex stock holds the No. 3 rank among its peers in the 740-stock (yes, that's the correct number) Medical-Biomed/Biotech industry group, according to IBD Stock Checkup. Halozyme Therapeutics is the top-ranked stock in the group.
The unique IBD Relative Strength Rating measures technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the trailing 52 weeks compares to other publicly traded companies.
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