Jim Cramer’s 10 Go-To Stocks for Success

5. Vertex Pharmaceutical Inc. (NASDAQ:VRTX)

Number of Hedge Fund Investors: 59

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) is a dominant force in the cystic fibrosis (CF) market, driven by its successful treatments like Trikafta, Kalydeco, and Symdeko. Trikafta has notably transformed CF treatment by targeting the disease’s root cause for many patients, providing Vertex Pharmaceutical Inc. (NASDAQ:VRTX) with a steady revenue stream and supporting its continued investment in research and development.

Vertex Pharmaceutical Inc. (NASDAQ:VRTX)’s financial health is strong, with Q2 2024 revenues of $2.49 billion, a 14% increase from the previous year due to robust sales of its CF treatments. Vertex Pharmaceutical Inc. (NASDAQ:VRTX) also reported a net income of $926 million and holds over $12 billion in cash and marketable securities, giving it significant resources for future growth. Vertex Pharmaceutical Inc. (NASDAQ:VRTX) is also expanding its focus beyond CF, developing promising new therapies for sickle cell disease, beta-thalassemia, type 1 diabetes, and pain management. Its collaboration with CRISPR Therapeutics on the gene-editing therapy exa-cel is particularly noteworthy, as it has the potential to broaden Vertex Pharmaceutical Inc. (NASDAQ:VRTX)’s market reach if successful.

In addition, Vertex Pharmaceutical Inc. (NASDAQ:VRTX)’s advancements in gene and cell therapies, including the acquisitions of Semma Therapeutics and ViaCyte, are progressing well. The positive interim results from the Phase 2 study of VX-880, a cell therapy for type 1 diabetes, highlight significant progress and could open new revenue opportunities. Investor sentiment towards Vertex Pharmaceutical Inc. (NASDAQ:VRTX) is favorable, reflecting confidence in its growth prospects.

Despite its strong performance and leadership in the CF market, Vertex Pharmaceutical Inc. (NASDAQ:VRTX)’s stock remains attractively valued compared to its biotech peers. Recent developments, such as the upcoming regulatory filings for exa-cel and the extension of its share repurchase program, further boost Vertex Pharmaceutical Inc. (NASDAQ:VRTX)’s investment appeal and future potential.