Volatile Biotech Could Give Your Portfolio a Boost

Buy Vertex Pharmaceuticals on declines using limit order price of $46

   
Volatile Biotech Could Give Your Portfolio a Boost

Vertex Pharmaceuticals (NASDAQ:VRTX) — This biopharmaceutical company concentrates on the development of drugs designed for the treatment of a wide range of diseases, led by hepatitis C and cystic fibrosis. S&P expects VRTX to earn $2.18 in 2012, up from 14 cents in 2011, and $2.56 in 2013. Q2 earnings are scheduled to be released on July 30, when the company is estimated to report earnings of 57 cents per share.

The company has been the subject of takeover discussions, and TheStreet reiterated its buy recommendation on July 2. Analysts’ consensus price target was recently reduced to $67 due to lowered sales of one of its drugs (Incivek), but targets range from $67 to $100.

Technically the target for VRTX is $70. Traders should buy this very volatile stock on declines using a limit order price of $46 or below.

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Article printed from InvestorPlace Media, http://investorplace.com/2012/07/trade-of-the-day-vertex-pharmaceuticals-nasdaq-vrtx/.

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