Bristol-Myers Squibb Company (BMY): 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.

Bristol-Myers Squibb Company ( BMY) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 1.6%. By the end of trading, Bristol-Myers Squibb Company fell 67 cents (-2.1%) to $30.81 on heavy volume. Throughout the day, 22.9 million shares of Bristol-Myers Squibb Company exchanged hands as compared to its average daily volume of 10 million shares. The stock ranged in price between $30.64-$31.38 after having opened the day at $31.33 as compared to the previous trading day's close of $31.48. Other companies within the Drugs industry that declined today were: Tranzyme ( TZYM), down 76.1%, Natural Alternatives International ( NAII), down 22.9%, AspenBio Pharma ( APPY), down 14.6%, and Galena Biopharma ( GALE), down 11.1%.
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Bristol-Myers Squibb Company, a biopharmaceutical company, engages in the discovery, development, licensing, manufacturing, marketing, distribution, and sale of biopharmaceutical products that help patients prevail over serious diseases worldwide. Bristol-Myers Squibb Company has a market cap of $52.61 billion and is part of the health care sector. The company has a P/E ratio of 28.7, above the S&P 500 P/E ratio of 17.7. Shares are down 10.7% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Bristol-Myers Squibb Company a buy, one analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates Bristol-Myers Squibb Company as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, AcelRx Pharmaceuticals ( ACRX), up 22.8%, Synergy Pharmaceuticals ( SGYP), up 12.3%, Palatin Technologies ( PTN), up 11.5%, and Supernus Pharmaceuticals ( SUPN), up 9.6%, were all gainers within the drugs industry with Sarepta Therapeutics ( SRPT) 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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