Celgene Corporation (CELG): 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.

Celgene Corporation ( CELG) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day down 0.1%. By the end of trading, Celgene Corporation rose $4.16 (5.8%) to $75.66 on heavy volume. Throughout the day, 7.5 million shares of Celgene Corporation exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in a price between $74.30-$78.46 after having opened the day at $78.02 as compared to the previous trading day's close of $71.50. Other companies within the Drugs industry that increased today were: Idera Pharmaceuticals ( IDRA), up 21.6%, Sarepta Therapeutics ( SRPT), up 19.3%, Myrexis ( MYRX), up 17.9%, and China Pharma ( CPHI), up 16.5%.
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Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes various therapies to treat cancer and immune-inflammatory related diseases primarily in the United States and Europe. Celgene Corporation has a market cap of $30.16 billion and is part of the health care sector. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7. Shares are up 5.8% year to date as of the close of trading on Friday. Currently there are 19 analysts that rate Celgene Corporation a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Celgene Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Clovis Oncology ( CLVS), down 41.8%, Galena Biopharma ( GALE), down 31%, Omeros Corporation ( OMER), down 15%, and Progenics Pharmaceuticals ( PGNX), down 14.1%, were all laggards within the drugs industry with GlaxoSmithKline ( GSK) 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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