Eli Lilly And Company (LLY): 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.

Eli Lilly and Company ( LLY) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 1.2%. By the end of trading, Eli Lilly and Company fell 87 cents (-1.7%) to $50.21 on light volume. Throughout the day, six million shares of Eli Lilly and Company exchanged hands as compared to its average daily volume of 8.3 million shares. The stock ranged in price between $50.13-$51 after having opened the day at $51 as compared to the previous trading day's close of $51.08. Other companies within the Drugs industry that declined today were: Columbia Laboratories ( CBRX), down 40.4%, Immunogen ( IMGN), down 16.8%, Savient Pharmaceuticals ( SVNT), down 13.5%, and Discovery Laboratories ( DSCO), down 9.7%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. Eli Lilly and Company has a market cap of $58.6 billion and is part of the health care sector. The company has a P/E ratio of 17.4, above the average drugs industry P/E ratio of 14 and below the S&P 500 P/E ratio of 17.7. Shares are up 21.5% year to date as of the close of trading on Thursday. Currently there are five analysts that rate Eli Lilly and Company a buy, three analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Eli Lilly and Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, Chelsea Therapeutics International ( CHTP), up 10.1%, Biostar Pharmaceuticals ( BSPM), up 7.9%, Galena Biopharma ( GALE), up 7%, and Osiris Therapeutics ( OSIR), up 7%, were all gainers within the drugs industry with Celgene Corporation ( CELG) 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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Allergan's Restasis Patent Transfer to Face Precedent-Setting Legal Battle

Eli Lilly Still Looking for Lower Prices

Is Lilly Headed for the Valley?

Walmart, With Extra $10M Fund, Is Among 7 Giving for Hurricane Irma Relief