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

Herbalife ( HLF) pushed the Drugs industry lower today making it today's featured Drugs loser. The industry as a whole closed the day down 0.9%. By the end of trading, Herbalife fell $10.62 (-15.1%) to $59.70 on heavy volume. Throughout the day, 30.4 million shares of Herbalife exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $51.93-$70.75 after having opened the day at $70.40 as compared to the previous trading day's close of $70.32. Other company's within the Drugs industry that declined today were: Savient Pharmaceuticals ( SVNT), down 21.5%, Protalix BioTherapeutics ( PLX), down 10.9%, Cempra ( CEMP), down 10.4%, and ViroPharma ( VPHM), down 9.7%.

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 $8.25 billion and is part of the health care sector. The company has a P/E ratio of 21.4, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 36.1% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Herbalife a buy, no analysts rate it a sell, and one rates it a hold.

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, compelling growth in net income and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Galena Biopharma ( GALE), up 13.2%, InterMune ( ITMN), up 12.3%, DARA Biosciences ( DARA), up 8%, and Aegerion Pharmaceuticals ( AEGR), up 7.5%, were all gainers within the drugs industry with Illumina ( ILMN) being today's featured drugs industry winner.

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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