15 Best Stocks to Buy According to Jim Simons’ Renaissance Technologies

7. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

Renaissance Technologies Q4 Stake: $562.6 million

Number of Hedge Fund Holders: 58

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a global biotechnology company that is involved in the discovery and development of small-molecule medications for the treatment of severe illnesses, including cystic fibrosis.

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) reported first-quarter earnings that narrowly fell short of consensus projections, with significant underperformance in sales of its Alyftrek and Journavx medications. Despite this, the company expressed confidence in future growth by increasing the lower end of its financial guidance by $100 million.

On May 7, Bernstein analysts reiterated the $462 price target for Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) while maintaining their Market Perform rating. Analyst William Pickering urged investors to exercise patience after Vertex shares experienced a notable 10% decline on May 6. Bernstein’s position suggests a cautious approach, with the firm emphasizing the significance of impending product launches and clinical trial results in determining the future trajectory of the company’s stock value.

GreensKeeper Asset Management stated the following regarding Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its Q1 2025 investor letter:

“Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) was our second-best performer in the quarter, +20.4%. Growing demand for its Cystic Fibrosis (CF) franchise continued to generate substantial free cash flow. Vertex remains focused on diversifying its product portfolio and recently launched two new approved therapies: Alyftrek and Journavx. Alyfrtek is an improvement to VRTX’s CF portfolio, offering a once-daily dosing regimen that is far more convenient for patients. Importantly, it covers 31 additional rare mutations of CF for which no previous treatment existed. Journavx, a non-opioid pain signal inhibitor for acute pain, is beginning to ramp up sales as physicians gain confidence in its real-world efficacy and as VRTX advances reimbursement negotiations with payors. We believe that Journavx has the potential to become a blockbuster therapy, providing significant quality-of-life improvements to patients. In addition, VRTX is developing therapies for chronic pain that utilize a similar mechanism of action—blocking selective sodium channels—to inhibit the transmission of pain signals with little off-target effects. Success would be great news for shareholders, but more importantly, offer a powerful alternative to opioids and help combat the opioid crisis.”