Onyx Pharmaceuticals Inc. (ONXX): 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.

Onyx Pharmaceuticals ( ONXX) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 1.2%. By the end of trading, Onyx Pharmaceuticals rose $3.95 (5.5%) to $75.87 on light volume. Throughout the day, 1.5 million shares of Onyx Pharmaceuticals exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $72.01-$76.23 after having opened the day at $72.78 as compared to the previous trading day's close of $71.92. Other companies within the Drugs industry that increased today were: Medicis Pharmaceuticals Corporation ( MRX), up 38.3%, Chelsea Therapeutics International ( CHTP), up 19.1%, Peregrine Pharmaceuticals ( PPHM), up 15.3%, and Synta Pharmaceuticals ( SNTA), up 15.1%.

Onyx Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of therapies that target the molecular mechanisms that cause cancer in the United States and internationally. Onyx Pharmaceuticals has a market cap of $4.68 billion and is part of the health care sector. The company has a P/E ratio of 248, above the average drugs industry P/E ratio of 239.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 63.6% year to date as of the close of trading on Friday. Currently there are 13 analysts that rate Onyx Pharmaceuticals a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Onyx Pharmaceuticals as a hold. 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 and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share.

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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