Pharmacyclics Incorporated (PCYC): 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.

Pharmacyclics Incorporated ( PCYC) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day down 0.5%. By the end of trading, Pharmacyclics Incorporated rose 97 cents (1.5%) to $65.74 on light volume. Throughout the day, 287,744 shares of Pharmacyclics Incorporated exchanged hands as compared to its average daily volume of 774,600 shares. The stock ranged in a price between $65.03-$66.20 after having opened the day at $65.33 as compared to the previous trading day's close of $64.77. Other companies within the Drugs industry that increased today were: Inovio Pharmaceuticals ( INO), up 14.9%, Peregrine Pharmaceuticals ( PPHM), up 12.8%, Affymax ( AFFY), up 9.9%, and Chelsea Therapeutics International ( CHTP), up 9.7%.
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Pharmacyclics, Inc. operates as a clinical-stage biopharmaceutical company focusing on discovering, developing, and commercializing small-molecule drugs for the treatment of cancer and immune mediated diseases. Pharmacyclics Incorporated has a market cap of $4.68 billion and is part of the health care sector. The company has a P/E ratio of 395.3, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 337% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Pharmacyclics Incorporated a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Pharmacyclics Incorporated as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, premium valuation and weak operating cash flow.

On the negative front, Threshold Pharmaceuticals ( THLD), down 11.7%, Tranzyme ( TZYM), down 9.9%, Cell Therapeutics ( CTIC), down 8.6%, and Cempra ( CEMP), down 8.1%, were all laggards within the drugs industry with Merck ( MRK) 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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