Amgen Inc (AMGN): 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.

Amgen ( AMGN) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole was unchanged today. By the end of trading, Amgen rose 94 cents (1.1%) to $87.29 on average volume. Throughout the day, 3.2 million shares of Amgen exchanged hands as compared to its average daily volume of four million shares. The stock ranged in a price between $86.55-$87.89 after having opened the day at $86.81 as compared to the previous trading day's close of $86.35. Other companies within the Drugs industry that increased today were: Novogen ( NVGN), up 74.6%, MEI Pharma ( MEIP), up 61.4%, Rosetta Genomics ( ROSG), up 17.3%, and ImmuCell Corporation ( ICCC), up 10.7%.
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Amgen Inc., a biotechnology medicines company, discovers, develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe, and Canada. Amgen has a market cap of $66.63 billion and is part of the health care sector. The company has a P/E ratio of 17.2, below the S&P 500 P/E ratio of 17.7. Shares are up 34.6% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Amgen a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Amgen as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Vivus ( VVUS), down 20.9%, Anthera Pharmaceuticals ( ANTH), down 19.7%, Cambrex Corporation ( CBM), down 16.3%, and Oxygen Biotherapeutics ( OXBT), down 12.7%, were all laggards within the drugs industry with Illumina ( ILMN) 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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