Shire PLC (SHPG): 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.

Shire ( SHPG) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 1.5%. By the end of trading, Shire fell $1.38 (-1.5%) to $91.20 on average volume. Throughout the day, 488,386 shares of Shire exchanged hands as compared to its average daily volume of 418,200 shares. The stock ranged in price between $90.87-$92.73 after having opened the day at $92.65 as compared to the previous trading day's close of $92.58. Other companies within the Drugs industry that declined today were: RBS Oil Trendpilot Exchange Traded Notes ( TWTI), down 9.9%, Columbia Laboratories ( CBRX), down 8.9%, Optimer Pharmaceuticals ( OPTR), down 6.6%, and Aoxing Pharmaceutical Company ( AXN), down 6.3%.
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Shire plc, a specialty biopharmaceutical company, engages in the research and development, manufacture, sale, and distribution of pharmaceutical products. It operates in three segments: Specialty Pharmaceuticals, Human Genetic Therapies, and Regenerative Medicine. Shire has a market cap of $17.34 billion and is part of the health care sector. The company has a P/E ratio of 18.4, below the average drugs industry P/E ratio of 19.2 and above the S&P 500 P/E ratio of 17.7. Shares are down 11% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Shire a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Shire as a buy. 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, growth in earnings per share, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, OxiGene ( OXGN), up 30.2%, Catalyst Pharmaceutical Partners ( CPRX), up 28.4%, Cormedix ( CRMD), up 26.3%, and DARA Biosciences ( DARA), up 20.9%, were all gainers within the drugs industry with Allergan ( AGN) 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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