5 Stocks Pushing The Drugs Industry Lower

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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 10 points (-0.1%) at 13,082 as of Monday, Nov. 5, 2012, 1:34 PM ET. The NYSE advances/declines ratio sits at 1,351 issues advancing vs. 1,574 declining with 129 unchanged.

The Drugs industry currently sits up 1.1% versus the S&P 500, which is down 0.1%. A company within the industry that fell today was Pharmacyclics Incorporated ( PCYC), up 10.8%.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Endo Health Solutions ( ENDP) is one of the companies pushing the Drugs industry lower today. As of noon trading, Endo Health Solutions is down $2.22 (-7.6%) to $27.01 on heavy volume Thus far, 4.0 million shares of Endo Health Solutions exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $26.81-$29.22 after having opened the day at $29.09 as compared to the previous trading day's close of $29.23.

Endo Health Solutions Inc. provides specialty healthcare solutions in the United States and internationally. Endo Health Solutions has a market cap of $3.4 billion and is part of the health care sector. The company has a P/E ratio of -967.0, below the S&P 500 P/E ratio of 17.7. Shares are down 16.0% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Endo Health Solutions a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Endo Health Solutions as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity. Get the full Endo Health Solutions Ratings Report now.

4. As of noon trading, Sanofi ( SNY) is down $0.65 (-1.5%) to $43.52 on light volume Thus far, 567,698 shares of Sanofi exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $43.42-$43.82 after having opened the day at $43.73 as compared to the previous trading day's close of $44.17.

Sanofi, together with its subsidiaries, researches, develops, manufactures, and markets healthcare products worldwide. Sanofi has a market cap of $118.6 billion and is part of the health care sector. The company has a P/E ratio of 24.1, above the S&P 500 P/E ratio of 17.7. Shares are up 20.9% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Sanofi a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Sanofi as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Sanofi Ratings Report now.

3. As of noon trading, Teva Pharmaceutical Industries ( TEVA) is down $0.48 (-1.2%) to $41.01 on light volume Thus far, 1.7 million shares of Teva Pharmaceutical Industries exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $40.90-$41.73 after having opened the day at $41.60 as compared to the previous trading day's close of $41.49.

Teva Pharmaceutical Industries Limited develops, manufactures, and sells pharmaceutical products worldwide. Teva Pharmaceutical Industries has a market cap of $35.9 billion and is part of the health care sector. The company has a P/E ratio of 11.2, below the S&P 500 P/E ratio of 17.7. Shares are up 2.4% year to date as of the close of trading on Friday. Currently there are 18 analysts that rate Teva Pharmaceutical Industries a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Teva Pharmaceutical Industries as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk. Get the full Teva Pharmaceutical Industries Ratings Report now.

2. As of noon trading, Novartis ( NVS) is down $0.37 (-0.6%) to $60.29 on light volume Thus far, 641,534 shares of Novartis exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $60.20-$60.45 after having opened the day at $60.43 as compared to the previous trading day's close of $60.66.

Novartis AG, through its subsidiaries, engages in the research, development, manufacture, and marketing of healthcare products worldwide. Novartis has a market cap of $147.1 billion and is part of the health care sector. The company has a P/E ratio of 16.1, below the S&P 500 P/E ratio of 17.7. Shares are up 6.1% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate Novartis a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Novartis as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Novartis Ratings Report now.

1. As of noon trading, Merck ( MRK) is down $0.63 (-1.4%) to $45.37 on light volume Thus far, 5.2 million shares of Merck exchanged hands as compared to its average daily volume of 10.7 million shares. The stock has ranged in price between $45.31-$46.00 after having opened the day at $45.81 as compared to the previous trading day's close of $46.00.

Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. Merck has a market cap of $139.9 billion and is part of the health care sector. The company has a P/E ratio of 13.1, below the S&P 500 P/E ratio of 17.7. Shares are up 22.0% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Merck a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Merck as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, growth in earnings per share and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Merck Ratings Report now.

If you are interested in one of these 4 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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