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.
GlaxoSmithKline (
GSK) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 0.1%. By the end of trading, GlaxoSmithKline fell 52 cents (-1.2%) to $43.03 on heavy volume. Throughout the day, 3.3 million shares of GlaxoSmithKline exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $42.50-$43.39 after having opened the day at $43.32 as compared to the previous trading day's close of $43.55. Other companies within the Drugs industry that declined today were:
Clovis Oncology (
CLVS), down 41.8%,
Galena Biopharma (
GALE), down 31%,
Omeros Corporation (
OMER), down 15%, and
Progenics Pharmaceuticals (
PGNX), down 14.1%.
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GlaxoSmithKline plc, together with its subsidiaries, engages in the discovery, development, manufacture, and marketing of pharmaceutical products, over the counter (OTC) medicines, and health-related consumer products worldwide. GlaxoSmithKline has a market cap of $110.25 billion and is part of the health care sector. The company has a P/E ratio of 13.2, below the S&P 500 P/E ratio of 17.7. Shares are down 4.3% year to date as of the close of trading on Friday. Currently there are two analysts that rate GlaxoSmithKline a buy, one analyst rates it a sell, and seven rate it a hold.
TheStreet Ratings rates GlaxoSmithKline as a
buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. 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 positive front,
Idera Pharmaceuticals (
IDRA), up 21.6%,
Sarepta Therapeutics (
SRPT), up 19.3%,
Myrexis (
MYRX), up 17.9%, and
China Pharma (
CPHI), up 16.5%, were all gainers within the drugs industry with
Celgene Corporation (
CELG) 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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