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How Does Vertex Compare to Its Peers?

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How had Vertex performed until July 2015?

Vertex Pharmaceuticals (VRTX) makes up 3.88% of the iShares Nasdaq Biotechnology ETF (IBB). For the week ending July 31, 2015, Vertex rose by 10.92%. The company outperformed IBB, which rose by 3.13% that week.

Vertex stock rose on the positive outlook that persisted despite a net loss of $188.8 million. Some of Vertex’s competitors like Shire (SHPG), Alexion Pharmaceuticals (ALXN), and AstraZeneca (AZN) also announced results during the week.

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The above chart indicates the performance of Vertex in comparison with its peers and benchmark index IBB. IBB had average returns of 2.71% up until July 31, VRTX had average returns of 1.59%, ALXN had average returns 0.57%, SHPG had average returns 3.50%, and AZN had average returns 0.95%. Thus, SHPG has outperformed others to date.

Vertex moving averages

Vertex has been trading above its 20, 50, and 100-day moving averages. The relative strength index (or RSI) was at 59 as of July 31, 2015. Though the stock price is trading close to the upper Bollinger Band, the stock doesn’t seem to be in the overbought position and is poised for long-term growth.

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