Wall Street Says This Growth Stock Is a Buy, but Is It Overvalued?
A struggling economy and a bear market haven't been able to stop Vertex Pharmaceuticals (NASDAQ: VRTX). Over the past year, the company's shares are up by 17%. And Wall Street continues to be enamored with the drugmaker, which has a consensus buy rating, according to Yahoo! Finance. But Vertex looks expensive when going by traditional valuation metrics.
A price-to-sales (P/S) ratio between 1 and 2 is usually considered in the "reasonably valued" range. Vertex's forward multiple comes in at more than four times the upper bounds of this range. Also, the company's forward price-to earnings (P/E) multiple is higher than that of the biotech industry, which is currently about 15. Should investors stay away from the stock?
Source Fool.com
Vertex Pharmaceuticals Inc. Stock
With 58 Buy predictions and 2 Sell predictions Vertex Pharmaceuticals Inc. is one of the favorites of our community.
As a result the target price of 459 € shows a slightly positive potential of 4.73% compared to the current price of 438.25 € for Vertex Pharmaceuticals Inc..