Novo Nordisk A/S (NVO): Today's Featured Drugs Winner

Novo Nordisk A/S ( NVO) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.1%. By the end of trading, Novo Nordisk A/S rose $2.17 (1.5%) to $151.01 on average volume. Throughout the day, 299,320 shares of Novo Nordisk A/S exchanged hands as compared to its average daily volume of 277,700 shares. The stock ranged in a price between $147.57-$151.61 after having opened the day at $147.83 as compared to the previous trading day's close of $148.84. Other companies within the Drugs industry that increased today were: Amarin Corporation ( AMRN), up 17.2%, Neptune Technologies & Bioressources ( NEPT), up 14%, Incyte ( INCY), up 13%, and Ampio Pharmaceuticals ( AMPE), up 12%.

Novo Nordisk A/S, a healthcare company, engages in the discovery, development, manufacture, and marketing of pharmaceutical products in Denmark and internationally. The company operates in two segments, Diabetes Care and Biopharmaceuticals. Novo Nordisk A/S has a market cap of $86.26 billion and is part of the health care sector. The company has a P/E ratio of four, below the average drugs industry P/E ratio of 28.4 and below the S&P 500 P/E ratio of 17.7. Shares are up 29.1% year to date as of the close of trading on Wednesday. Currently there are two analysts that rate Novo Nordisk A/S a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Novo Nordisk A/S as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the negative front, Repligen Corporation ( RGEN), down 40.2%, Transcept Pharmaceuticals ( TSPT), down 15.6%, Cytokinetics ( CYTK), down 13.3%, and China Shenghuo Pharmaceutical Holdings ( KUN), down 11.9%, were all losers within the drugs industry with AstraZeneca ( AZN) 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).
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