Bristol-Myers Squibb Company (BMY): 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.

Bristol-Myers Squibb Company ( BMY) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.4%. By the end of trading, Bristol-Myers Squibb Company rose 68 cents (2.1%) to $33.73 on heavy volume. Throughout the day, 16.6 million shares of Bristol-Myers Squibb Company exchanged hands as compared to its average daily volume of 11 million shares. The stock ranged in a price between $33.14-$33.73 after having opened the day at $33.22 as compared to the previous trading day's close of $33.05. Other companies within the Drugs industry that increased today were: Chelsea Therapeutics International ( CHTP), up 28%, Nymox Pharmaceutical Corporation ( NYMX), up 15.3%, Cempra ( CEMP), up 10.8%, and MEI Pharma ( MEIP), up 10.8%.
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Bristol-Myers Squibb Company, a biopharmaceutical company, engages in the discovery, development, licensing, manufacturing, marketing, distribution, and sale of biopharmaceutical products that help patients prevail over serious diseases worldwide. Bristol-Myers Squibb Company has a market cap of $55.81 billion and is part of the health care sector. The company has a P/E ratio of 16, equal to the average drugs industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 6.2% year to date as of the close of trading on Wednesday. Currently there are eight analysts that rate Bristol-Myers Squibb Company a buy, one analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates Bristol-Myers Squibb Company as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Cormedix ( CRMD), down 15.7%, XenoPort ( XNPT), down 11.9%, Transition Therapeutics ( TTHI), down 10%, and Savient Pharmaceuticals ( SVNT), down 9.6%, were all laggards within the drugs industry with Novo Nordisk A/S ( NVO) 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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