Vertex Pharmaceuticals Aktie News

The bear market induced by the Federal Reserve's monetary tightening officially ended in 2023, but it seems no one remembered to tell the biotech sector.

It's very tempting to pile into the stocks with the strongest positive momentum of the moment -- they've proven themselves and could continue along this path. But in many cases, you could set yourself up for a bigger win if you look to quality companies that have seen their stocks stumble in recent times.

Vertex Pharmaceuticals (VRTX 3.40%), a leading drugmaker, is performing exceedingly well for the year -- or at least it was, until it released its first-quarter update. The results were not to the market's liking, so much so that they led to a significant post-earnings dip for the stock.

Regardless of how stocks are performing right now, history tells us that the market tends to generate solid returns over long periods. Investors can do even better than the average market performance by buying shares of companies likely to beat broader equities.

Uncertainty has weighed on stocks over the past several weeks, pushing the three major indexes lower -- the S&P 500 (^GSPC -0.07%) even temporarily slid into a bear market. What's driven this negative momentum is investors' concerns about the potential impact of import tariffs on corporate earnings.

Market volatility and near-term uncertainty can be challenging to deal with these days -- or at any time. However, even in the current environment, there are excellent investment opportunities.

Vertex Pharmaceuticals' (VRTX -9.39%) remarkable momentum came to a screeching halt this week. The big biotech stock had been up well over 20% year to date.

Vertex Pharmaceuticals reported decent Q1 earnings, but the company missed estimates for both revenue and earnings. Vertex's diversification efforts are most visible in the progress of its pain management portfolio. The FDA approval of Journavx marks the beginning of a new era for the company. VRTX is not going to be the same company by 2030. I expect notable changes in its margin profile as th...