Perrigo Company (PRGO): 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.

Perrigo Company ( PRGO) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Perrigo Company fell $1.69 (-1.6%) to $103.43 on average volume. Throughout the day, 756,720 shares of Perrigo Company exchanged hands as compared to its average daily volume of 680,100 shares. The stock ranged in price between $103.35-$105.04 after having opened the day at $104.85 as compared to the previous trading day's close of $105.12. Other companies within the Drugs industry that declined today were: Cyclacel Pharmaceuticals ( CYCC), down 12.3%, iBio ( IBIO), down 10.7%, Nymox Pharmaceutical Corporation ( NYMX), down 10.4%, and Biostar Pharmaceuticals ( BSPM), down 10.2%.
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Perrigo Company, through its subsidiaries, develops, manufactures, and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, and active pharmaceutical ingredients (API) worldwide. Perrigo Company has a market cap of $9.91 billion and is part of the health care sector. The company has a P/E ratio of 23.2, above the S&P 500 P/E ratio of 17.7. Shares are up 8% year to date as of the close of trading on Monday. Currently there are six analysts that rate Perrigo Company a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates Perrigo Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Galena Biopharma ( GALE), up 21.4%, OxiGene ( OXGN), up 20.9%, Catalyst Pharmaceutical Partners ( CPRX), up 17%, and Dynavax Technologies Corporation ( DVAX), up 13.4%, were all gainers within the drugs industry with Questcor Pharmaceuticals ( QCOR) 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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