Arena Pharmaceuticals Inc. (ARNA): 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.

Arena Pharmaceuticals ( ARNA) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day down 1.8%. By the end of trading, Arena Pharmaceuticals rose 33 cents (4.6%) to $7.57 on average volume. Throughout the day, 9.1 million shares of Arena Pharmaceuticals exchanged hands as compared to its average daily volume of 10.3 million shares. The stock ranged in a price between $7.24-$7.66 after having opened the day at $7.26 as compared to the previous trading day's close of $7.24. Other companies within the Drugs industry that increased today were: DUSA Pharmaceuticals ( DUSA), up 37.5%, Palatin Technologies ( PTN), up 21.4%, InterMune ( ITMN), up 16.7%, and Tekmira Pharmaceuticals Corporation ( TKMR), up 16.2%.
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Arena Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, engages in discovering, developing, and commercializing oral drugs that target G protein-coupled receptors in the therapeutic areas of cardiovascular, central nervous system, inflammatory, and metabolic diseases. Arena Pharmaceuticals has a market cap of $1.65 billion and is part of the health care sector. The company has a P/E ratio of -14.9, below the S&P 500 P/E ratio of 17.7. Shares are up 287.2% year to date as of the close of trading on Wednesday. Currently there are two analysts that rate Arena Pharmaceuticals a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Arena Pharmaceuticals as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

On the negative front, Catalyst Pharmaceutical Partners ( CPRX), down 65.5%, Biocryst Pharmaceuticals ( BCRX), down 40.4%, Progenics Pharmaceuticals ( PGNX), down 26.3%, and Pluristem Therapeutic ( PSTI), down 22.8%, were all laggards within the drugs industry with Abbott Laboratories ( ABT) 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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