Onyx Pharmaceuticals Inc. (ONXX): Today's Featured Drugs Laggard

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 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, Onyx Pharmaceuticals fell $1.12 (-1.5%) to $75.40 on light volume. Throughout the day, 681,856 shares of Onyx Pharmaceuticals exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $75.27-$76.97 after having opened the day at $76.03 as compared to the previous trading day's close of $76.52. Other companies within the Drugs industry that declined today were: Complete Genomics ( GNOM), down 11.5%, Cytori Therapeutics ( CYTX), down 8.3%, Peregrine Pharmaceuticals ( PPHM), down 8.3%, and Sequenom ( SQNM), down 7.2%.

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 $5.12 billion and is part of the health care sector. The company has a P/E ratio of 271.4, above the average drugs industry P/E ratio of 262.4 and above the S&P 500 P/E ratio of 17.7. Shares are up 79.1% year to date as of the close of trading on Monday. 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.

On the positive front, Cell Therapeutics ( CTIC), up 38.5%, Sunesis Pharmaceuticals ( SNSS), up 32.2%, AspenBio Pharma ( APPY), up 28%, and Prana Biotechnology ( PRAN), up 10.5%, were all gainers within the drugs industry with Bristol-Myers Squibb Company ( BMY) 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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