Illumina Inc. (ILMN): Today's Featured Drugs Laggard

Illumina ( ILMN) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Illumina fell $1.60 (-3.7%) to $42 on average volume. Throughout the day, 1.1 million shares of Illumina exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $41.78-$43.60 after having opened the day at $43.43 as compared to the previous trading day's close of $43.60. Other companies within the Drugs industry that declined today were: SciClone Pharmaceuticals ( SCLN), down 16.3%, Arrowhead Research Corporation ( ARWR), down 14.2%, Bioline Rx Ltd. ADR ( BLRX), down 12.4%, and Senesco Technologies ( SNT), down 11.5%.

Illumina, Inc. develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation and biological function in North America, Europe, Latin America, the Asia-Pacific, the Middle East, and South Africa. Illumina has a market cap of $5.36 billion and is part of the health care sector. The company has a P/E ratio of 69.3, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 43.1% year to date as of the close of trading on Friday. Currently there are nine analysts that rate Illumina a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Illumina as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and premium valuation.

On the positive front, Alexza Pharmaceuticals ( ALXA), up 38.9%, Peregrine Pharmaceuticals ( PPHM), up 24.9%, Savient Pharmaceuticals ( SVNT), up 19.3%, and Tengion ( TNGN), up 14%, were all gainers within the drugs industry with Pharmacyclics Incorporated ( PCYC) being today's featured drugs industry leader.

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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