Vertex Pharmaceuticals Incorporated (VRTX) Slid on Softer Revenue and Earnings

ClearBridge Investments, an investment management company, released its “ClearBridge All Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, growth stocks led the stock market to rebound from tariff uncertainty. The benchmark Russell 3000 Growth Index performed better as risk-on sentiment took hold, rising 17.6% and outperforming the Russell 3000 Value Index by over 1,300 basis points. The Strategy underperformed its Russell 3000 Growth Index benchmark in the second quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, ClearBridge All Cap Growth Strategy highlighted stocks such as Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a biotechnology company focusing on developing and commercializing therapies for treating cystic fibrosis (CF). The one-month return of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) was -17.20%, and its shares lost 21.15% of their value over the last 52 weeks. On August 29, 2025, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) stock closed at $391.02 per share, with a market capitalization of $100.254 billion.

ClearBridge All Cap Growth Strategy stated the following regarding Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its second quarter 2025 investor letter:

“Longtime biotech holding Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) also traded lower on softer than expected first-quarter revenue and earnings, primarily due to weakness in parts of Europe and slower uptake of its next-generation cystic fibrosis treatment, Alyftrek. That said, the company’s key products, including non-opioid acute pain reliever Journavx, should see solid growth in the second half of the year.”

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) at the end of the second quarter, which was 60 in the previous quarter. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) delivered $2.96 billion in revenue in the second quarter, representing 12% growth compared to Q2 2024. While we acknowledge the potential of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.