High Beta Stock Review for Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) at Beta Reaches:: 1.68

After looking for stocks with higher betas, we can see that Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) has a current beta of 1.68. The beta of a stock is typically used as a historical volatility indicator in relation to the overall market. Beta is a measurement of the stock price fluctuation, and may be used to gauge how fast the price may rise or fall. Beta compares the returns of company stock to return of the market as a whole. A beta of 1 would indicate that the stock price moves with the market. A beta below 1 might indicate that the stock is less volatile than the market. A beta above 1 indicates that the stock price is more volatile than the market in theory. Checking in on current price action, company shares had recently touched 194.70. From the session open, shares have moved 1.07%. Investors will be watching to see how the stock reacts to market influences over the next few weeks. As we near the halfway point of the calendar year, investors may be trying to figure out if now is the time to get in on the name, or whether to wait for a better opportunity.

Individuals may have the tendency to make irrational investing decisions based on certain biases rather than focusing on market fundamentals. They might purchase a certain stock when the price is surging higher or when the entire stock market is in an upswing. This behavior is typically driven by the fear of missing out on possible profits that they think that everybody else is making. When the market continues to rise, they may believe that they need to get in quick before missing out completely. On the other side, investors may be too quick to sell a certain stock when it is been moving to the downside. They may be scared of further losses and the fear of uncertainty may creep in and cause unnecessary selling. 

We are also noting that Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) was recently seen trading 1.71% away from the 50-day high and 28.26% separated from the 50-day low. Taking a broader view, the current separation from the 52-week high is -0.11%, and the distance from the 52-week low is currently 35.14%. Let’s also look quickly at some analyst views on company shares. At the time of writing, the consensus target price for the company is $202.23. The consensus recommendation provided by covering sell-side analysts is currently 1.80. This number lands on a scale from 1 to 5. Following this scale, a rating of a 1 or a 2 would indicate a consensus Buy recommendation. A rating of 4 or 5 would represent a consensus Sell recommendation. A rating of 3 would indicate a Hold recommendation.

After a recent check, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) shares have been seen trading 13.26% away from the 20-day moving average. Zooming out to the 50-day, we can see that shares are currently trading 13.13% off of that mark. Looking at the 200-day moving average, shares have been trading 14.87% away from that value. The moving average uses the sum of all of the previous closing prices over a certain time period and divides the result by the number of prices used in the calculation. Many investors will opt to use multiple time periods when examining moving averages. Moving averages are considered to be lagging indicators, and they may prove to be very useful for spotting peaks and troughs. They may also be used to help the trader calculate sturdy support and resistance levels for the stock.

Investors may be closely monitoring historical stock price performance in order to examine what has been happening with company shares. Let’s take a look at some of the numbers for Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). Stock price performance for the past week is currently noted at 3.48%. If we look back to the beginning of the calendar year, shares have performed 17.49%. Looking back over the past full-year, shares have performed 23.86%. Over the past month, the stock has performed 19.13%. Over the last quarter, the stock has performed 4.97%. Briefly looking at some recent volatility numbers, we can see that shares have been noted at 2.50% for the week, and 3.46% for the past month.

Dedicated investors are usually on the lookout for promising stocks that have been overlooked by the investment community. They may be searching for companies that have slipped under the radar and are primed for a move higher. Some investors may do the research and locate these stocks that are infrequently in the financial news headlines and are relatively unknown by the average investor. These stocks may be smaller cap, trading on a foreign exchange, or stocks that used to be prominent that have not been part of the conversation recently. Finding these stocks may take some extra research and effort. Investors who are able to do enough digging may be able to find some great names to help support the stock portfolio.

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