Illumina Inc. (ILMN): 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.

Illumina ( ILMN) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole was unchanged today. By the end of trading, Illumina fell 60 cents (-1.2%) to $47.68 on light volume. Throughout the day, 1.1 million shares of Illumina exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in price between $47.59-$48.24 after having opened the day at $48.22 as compared to the previous trading day's close of $48.28. Other companies within the Drugs industry that declined today were: Vivus ( VVUS), down 20.9%, Anthera Pharmaceuticals ( ANTH), down 19.7%, Cambrex Corporation ( CBM), down 16.3%, and Oxygen Biotherapeutics ( OXBT), down 12.7%.
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Illumina, Inc. develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation and biological function in North America, Europe, Latin America, the Asia-Pacific, the Middle East, and South Africa. Illumina has a market cap of $5.91 billion and is part of the health care sector. The company has a P/E ratio of 68.5, above the S&P 500 P/E ratio of 17.7. Shares are up 58.4% year to date as of the close of trading on Monday. Currently there are nine analysts that rate Illumina a buy, one analyst rates it a sell, and six rate it a hold.

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

On the positive front, Novogen ( NVGN), up 74.6%, MEI Pharma ( MEIP), up 61.4%, Rosetta Genomics ( ROSG), up 17.3%, and ImmuCell Corporation ( ICCC), up 10.7%, were all gainers within the drugs industry with Amgen ( AMGN) 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).

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