Herbalife Ltd. (HLF): Today's Featured Drugs Winner

Herbalife ( HLF) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.9%. By the end of trading, Herbalife rose $1.15 (2.1%) to $57.02 on average volume. Throughout the day, 1.5 million shares of Herbalife exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in a price between $56.40-$57.21 after having opened the day at $56.67 as compared to the previous trading day's close of $55.87. Other companies within the Drugs industry that increased today were: Athersys Inc ( ATHX), up 30.7%, Zalicus Inc ( ZLCS), up 22.1%, Affymax Inc ( AFFY), up 19.2%, and Hemispherx Biopharma Inc ( HEB), up 17.3%.

Herbalife Ltd., a network marketing company, sells weight management, nutritional supplement, energy, sports and fitness, and personal care products worldwide. Herbalife has a market cap of $6.5 billion and is part of the health care sector. The company has a P/E ratio of 18.1, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 63.4% year to date as of the close of trading on Friday.

TheStreet Ratings rates Herbalife as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, notable return on equity and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Natural Alternatives International ( NAII), down 21%, ProPhase Labs Inc ( PRPH), down 12.1%, Aoxing Pharmaceutical Company Inc ( AXN), down 10%, and Poniard Pharmaceuticals Inc ( PARDD), down 9.6%, were all losers within the drugs industry with Merck & Co Inc ( MRK) being today's drugs industry loser.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the drugs industry could consider SPDR S&P Pharmaceuticals ETF ( XPH) while those bearish on the drugs industry could consider ProShares UltraShort Nasdaq Biotech ( BIS).

null

More from Markets

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

North Korea, Apple, GPDR and Gap - 5 Things You Must Know

North Korea, Apple, GPDR and Gap - 5 Things You Must Know

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI