Perrigo Company (PRGO): Today's Featured Drugs Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Perrigo Company ( PRGO) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day down 0.1%. By the end of trading, Perrigo Company rose $1.71 (1.6%) to $108.64 on average volume. Throughout the day, 761,354 shares of Perrigo Company exchanged hands as compared to its average daily volume of 627,900 shares. The stock ranged in a price between $105.89-$108.94 after having opened the day at $105.89 as compared to the previous trading day's close of $106.93. Other companies within the Drugs industry that increased today were: Rosetta Genomics ( ROSG), up 23.4%, Cormedix ( CRMD), up 19.8%, Repros Therapeutics ( RPRX), up 15.2%, and Acura Pharmaceuticals ( ACUR), up 13.8%.

Perrigo Company, through its subsidiaries, develops, manufactures, and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, and active pharmaceutical ingredients (API) worldwide. Perrigo Company has a market cap of $10.78 billion and is part of the health care sector. The company has a P/E ratio of 26.1, below the average drugs industry P/E ratio of 29.2 and above the S&P 500 P/E ratio of 17.7. Shares are up 19.8% year to date as of the close of trading on Friday. Currently there are five analysts that rate Perrigo Company a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Perrigo Company as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Palatin Technologies ( PTN), down 12.6%, Aastrom Biosciences ( ASTM), down 8.8%, Zalicus ( ZLCS), down 8%, and Horizon Pharma ( HZNP), down 7.6%, were all laggards within the drugs industry with Watson Pharmaceuticals ( WPI) being today's drugs industry laggard.

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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