Boston, Massachusetts-based Vertex Pharmaceuticals Incorporated (VRTX) is a biotechnology company that engages in developing and commercializing therapies for treating serious diseases, primarily cystic fibrosis (CF.) Valued at a market cap of nearly $120.6 billion, the company’s lead marketed products are Trikafta, Symdeko/Symkevi, Orkambi, and Kalydeco, which are collectively approved to treat people with CF.

Companies valued at $10 billion or more are generally described as “large-cap” stocks and Vertex Pharmaceuticals fits right into that category. The biotech company is a pioneer in CF research and development and has discovered, developed, and produced the first medicines to target the underlying cause of cystic fibrosis. 

However, the healthcare giant has declined 9.4% from its 52-week high of $519.88, achieved on Nov. 8. Shares of VRTX have declined 5.1% over the past three months, significantly lagging behind the broader Dow Jones Industrials Average’s ($DOWI) nearly 8.7% gains over the same time frame.

However, in the longer term, VRTX stock rose 33.4% over the past 52 weeks, outperforming DOWI 's 26.8% returns, but its nearly 15.1% rise on a YTD basis lagged behind DOWI’s YTD gains of 19.2%.

To confirm the recent bearish trend, VRTX has been trading below its 50-day moving average since mid-November. However, the stock has been trading above its 200-day moving average since the past one year, despite some fluctuations. 

Shares of VRTX gained 5.7% after its strong Q3 earnings release on Nov. 4. The company’s revenue increased 11.7% year-over-year to $2.77 billion, which surpassed the Wall Street estimates of $2.67 billion. This was primarily driven by robust sales growth in its CF therapy Trikafta/Kaftrio. Moreover, its adjusted earnings of $4.38 per share increased 7.3% from a year ago and outpaced the consensus estimates of $4.13. Additionally, the company raised its full-year 2024 product revenue guidance, which might have further enhanced investor confidence. 

VRTX has significantly outpaced its rival, Biogen Inc. (BIIB), which declined 37.9% on a YTD basis and 30.8% over the past 52 weeks.

As Vertex Pharmaceuticals outperformed the broader market over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 33 analysts covering the stock, and the mean price target of $520.48 suggests an 11.2% premium to its current levels.