Vertex Is Poised For An Earnings Breakout
Earnings season is in full effect with some of the big hitters already hitting the tape.
On Wednesday morning one of biotechs big hitters, Biogen Idec (NASDAQ: BIIB), released its earnings -- and the company’s big beat sent the stock soaring 12 percent at the open.
Another biotech company with earnings coming out soon is Vertex Pharmaceuticals (NASDAQ: VRTX), and the stock seems to be pausing before the news.
Vertex Pharmaceuticals is engaged in discovering, developing, manufacturing and commercializing small molecule drugs for patients with serious diseases.
The company is involved in various other research areas along with early-stage development programs, including programs in the areas of oncology, multiple sclerosis, and other serious and rare diseases.
Take a look at the one-year chart of Vertex with added notations:
Vertex hadn’t done a whole lot in April, May and June -- that is, up until the big jump to almost $100 a share.
Since that rise, the stock has been consolidating within a very tight range, between $95 and $100. This would appear to be a “calm before the storm,” leading into earnings next week.
In all likelihood, Vertex’s earnings release next week on July 29 will lead to a break out of the stock’s trading range.
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