Johnson & Johnson (JNJ): 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.

Johnson & Johnson ( JNJ) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 1.1%. By the end of trading, Johnson & Johnson rose 83 cents (1.2%) to $68.98 on average volume. Throughout the day, 12 million shares of Johnson & Johnson exchanged hands as compared to its average daily volume of 12.4 million shares. The stock ranged in a price between $68-$69.17 after having opened the day at $68 as compared to the previous trading day's close of $68.15. Other companies within the Drugs industry that increased today were: Neuralstem ( CUR), up 38%, AEterna Zentaris ( AEZS), up 21.8%, Aoxing Pharmaceutical Company ( AXN), up 16.7%, and Sunesis Pharmaceuticals ( SNSS), up 15.5%.
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Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of various products in the health care field worldwide. Johnson & Johnson has a market cap of $188.03 billion and is part of the health care sector. The company has a P/E ratio of 21.7, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 4% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Johnson & Johnson a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Johnson & Johnson 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Cornerstone Therapeutics ( CRTX), down 21.2%, Pluristem Therapeutic ( PSTI), down 15.2%, Cell Therapeutics ( CTIC), down 13.2%, and Somaxon Pharmaceuticals ( SOMX), down 6.9%, were all laggards within the drugs industry with BioMarin Pharmaceuticals ( BMRN) 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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