Vertex Is Poised For An Earnings Breakout

Benzinga

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Earnings season is in full effect with some of the big hitters already hitting the tape.

This last week has given us results from the likes of Microsoft (NASDAQ: MSFT), Google (NASDAQ: GOOGL) and Apple (NASDQ: AAPL).

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.

Related: 2 Biotech Stocks That Beat The Market Last Week

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:

 

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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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