This featured biotechnology stock is a clear leader in the treatment of cystic fibrosis (CF), explains growth stock expert Crista Huff, editor of Cabot Undervalued Stock Advisor.

Vertex Pharmaceuticals (VRTX) has at least six drug candidates in its pipeline, including a phase III cystic fibrosis treatment due for completion in July 2017.

It’s CF therapies can potentially treat about half of worldwide CF patients, generating billions of dollars in sales

Despite only one barely-profitable year between 2006 and 2015, Vertex is expected to earn $1.10 per share in 2016, $3.32 in 2017 (December year-end) — reflecting 202% earnings growth in 2017 — and to surpass $11.00 EPS by the year 2020.

Now that Vertex is turning into a profitable company, it will qualify as a candidate for a myriad of institutional growth stock portfolios; that means lots of potential buying activity, which will push the share price upwards.

Most investors will immediately recognize that 202% earnings growth next year, coupled with an extremely low 2017 P/E of 26.4, flags VRTX as a wildly undervalued aggressive growth stock.

It’s no wonder that institutional investors own 98% of this large-cap stock! VRTX appears to be a slam-dunk capital gain opportunity.

VRTX reached its all-time high closing price at $141.48 in August 2015, before falling over 40%. The stock is recovering from this temporary pullback.

Traders can jump out as VRTX shares approach medium-term upside resistance at the $110 level.

Everyone else, however, should hold their shares for future capital gains because, with a $110, the P/E would only be 33 and the stock would still be extremely undervalued.

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By Crista Huff, Editor of Cabot Undervalued Stock Advisor