Forest Laboratories Inc. (FRX): 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.

Forest Laboratories ( FRX) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day down 0.6%. By the end of trading, Forest Laboratories rose 38 cents (1.1%) to $35.04 on heavy volume. Throughout the day, 3.4 million shares of Forest Laboratories exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in a price between $34.55-$35.45 after having opened the day at $34.66 as compared to the previous trading day's close of $34.66. Other companies within the Drugs industry that increased today were: StemCells ( STEM), up 21.7%, Sarepta Therapeutics ( SRPT), up 14.3%, Repros Therapeutics ( RPRX), up 10.6%, and Neuralstem ( CUR), up 9.6%.

Forest Laboratories, Inc. develops, manufactures, and sells branded forms of ethical drug products primarily in the United States and Europe. Forest Laboratories has a market cap of $9.23 billion and is part of the health care sector. The company has a P/E ratio of 12.1, equal to the average drugs industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 14.8% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Forest Laboratories a buy, two analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Forest Laboratories as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the negative front, MEI Pharma ( MEIP), down 16.6%, Hemispherx Biopharma ( HEB), down 10.5%, Cadence Pharmaceuticals ( CADX), down 9.9%, and Cell Therapeutics ( CTIC), down 9.2%, were all laggards within the drugs industry with Celgene Corporation ( CELG) 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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.

null

More from Markets

Component Stocks Rise After Trump Reverses Decision on ZTE

Component Stocks Rise After Trump Reverses Decision on ZTE

Crude Slides as Russia Eases Cuts and U.S. Oil Producers Boost Rig Count

Crude Slides as Russia Eases Cuts and U.S. Oil Producers Boost Rig Count

Stocks Trade Mixed, Energy Shares Fall on Sharp Drop in Oil Prices

Stocks Trade Mixed, Energy Shares Fall on Sharp Drop in Oil Prices

Best Buy's Billionaire Founder: We Were 'Late to the Game' in Online Shopping

Best Buy's Billionaire Founder: We Were 'Late to the Game' in Online Shopping

Jim Cramer: Intuit Had a Fantastic Quarter

Jim Cramer: Intuit Had a Fantastic Quarter