2 Must-Own Biotech Stocks To Buy In May

These drugs also have lengthy patents, which protect against generics. VRTX’s non-cystic fibrosis pipeline is also impressive. The company has been looking into areas such as AAT deficiency, sickle cell disease, and beta-thalassemia.

For instance, VRTX has been co-developing a gene-editing treatment in partnership with CRISPR Therapeutics targeting sickle cell disease and thalassemia. The company even recently announced it’s buying the majority rights to gene-editing therapy.

VRTX has an overall grade of B, which is a Buy rating in our POWR Ratings service. The company has a Value Grade of A as its stock is trading at an attractive valuation. Its forward P/E is below 20, and its EV/EBITDA is below the industry average. The stock has also been trading 30% below its average analyst target, indicating a substantial potential upside.

The company also has a Quality Grade of A, which indicates a strong balance sheet. VRTX has a very high current ratio of 4.3, which suggests the company has more than enough liquidity to handle short-term needs.

VRTX also has robust efficiency metrics, as both its return on equity and return on invested capital are over 30%. To see the rest of VRTX’s grades (Growth, Momentum, Stability, and sentiment), click here. VRTX is ranked #17 in the Biotech industry.

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