3 Reasons to Buy Vertex Pharmaceuticals and 1 Reason Not To
Vertex Pharmaceuticals (NASDAQ: VRTX) is a pharmaceutical company that has utilized its portfolio of medicines for cystic fibrosis (CF) to grow consistently, expanding its trailing revenues by more than 423% over the last five years. But Vertex's stock has underperformed the market this year. The company's heavy focus on CF treatments has historically paid off, but the strategy may carry longer-term risks in part because Vertex's drugs will eventually lose their patent exclusivity. Is Vertex approaching the end of its run as a stalwart growth stock, or does it still have some gas in the tank for new investors?
I expect that Vertex will continue to grow for quite some time, and that it will return to outperforming the market relatively soon. But the factors driving that future success probably won't be quite the same as those that have carried it to this point. Here are three reasons that Vertex could be worth buying and holding for the long term -- and one reason why investors might want to be cautious.
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Source Fool.com
