Boston, Massachusetts-based Vertex Pharmaceuticals Incorporated (VRTX) is a biotechnology company. It focuses on the discovery, development, and commercialization of small-molecule drugs targeting serious diseases. With a market cap of $101.3 billion, Vertex’s operations span the Americas, EMEA, and the Indo-Pacific.

The biotech giant has significantly underperformed the broader market over the past year. VRTX stock prices have plunged 17.7% over the past 52 weeks and 1.9% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 16.1% gain over the past year and 10% surge in 2025.

Narrowing the focus, Vertex has also underperformed the sector-focused Health Care Select Sector SPDR Fund’s (XLV) 10.7% decline over the past year and a marginal 44 bps uptick in 2025.

Despite reporting better-than-expected financials, Vertex Pharmaceuticals’ stock prices plummeted 20.6% in a single trading session following the release of its Q2 results on Aug. 4. Driven by continued momentum, the company’s topline for the quarter surged 12.1% year-over-year to $2.96 billion, exceeding the consensus estimates by 2.6%. Further, the company reported a massive improvement in profitability. Its non-GAAP net income for the quarter came in at $1.2 billion, up from the net loss of $3.3 billion reported in the year-ago quarter. Moreover, its adjusted EPS of $4.52 surpassed the Street’s bottom-line estimates by 6.6%.

However, these positives were overshadowed by Vertex’s trial setback. The company’s VX-993 failed to meet the main goal in a mid-stage pain study, which stopped the drug from progressing into a pivotal development as monotherapy in acute pain.

For the full fiscal 2025, ending in December, analysts expect VRTX to deliver an EPS of $15.89, up from the net loss of $1.35 per share in 2024. The company has a mixed earnings surprise history. It surpassed the Street’s bottom-line estimates thrice over the past four quarters, while missing on one other occasion.

The stock has a consensus “Moderate Buy” rating overall. Of the 33 analysts covering the stock, opinions include 17 “Strong Buys,” one “Moderate Buy,” 14 “Holds,” and one “Strong Sell.”

This configuration is slightly more optimistic than a month ago, when 16 analysts gave “Strong Buy” recommendations.

On Aug. 6, Guggenheim analyst Debjit Chattopadhyay maintained a “Buy” rating on VRTX and reduced the price target from $558 to $546.

As of writing, VRTX’s mean price target of $495.31 represents a 25.4% premium to current price levels. Meanwhile, the street-high target of $624 suggests a 57.9% upside potential.