3 Stocks Pushing The Drugs Industry Higher

TheStreet Ratings group would like to highlight 3 stocks pushing the drugs industry higher today, Nov. 16, 2012.

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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 40 points (0.3%) at 12,582 as of Friday, Nov. 16, 2012, 11:59 AM ET. The NYSE advances/declines ratio sits at 1,549 issues advancing vs. 1,392 declining with 99 unchanged.

The Drugs industry currently sits down 0.7% versus the S&P 500, which is down 0.1%. Top gainers within the industry include Regeneron Pharmaceuticals ( REGN), up 7.8%, Gilead ( GILD), up 1.5% and Bristol-Myers Squibb Company ( BMY), up 1.6%. A company within the industry that fell today was Eli Lilly and Company ( LLY), up 0.9%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry higher today:

3. Valeant Pharmaceuticals International ( VRX) is one of the companies pushing the Drugs industry higher today. As of noon trading, Valeant Pharmaceuticals International is up $1.48 (2.8%) to $54.80 on average volume Thus far, 951,848 shares of Valeant Pharmaceuticals International exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $53.05-$55.01 after having opened the day at $53.06 as compared to the previous trading day's close of $53.32.

Valeant Pharmaceuticals International, Inc., a specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products in the areas of neurology, dermatology, and branded generics. Valeant Pharmaceuticals International has a market cap of $16.3 billion and is part of the health care sector. The company has a P/E ratio of 669.5, above the S&P 500 P/E ratio of 17.7. Shares are up 14.7% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Valeant Pharmaceuticals International a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Valeant Pharmaceuticals International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we find that net income has been generally deteriorating over time. Get the full Valeant Pharmaceuticals International Ratings Report now.

2. As of noon trading, Alexion Pharmaceuticals ( ALXN) is up $1.74 (2.0%) to $89.99 on average volume Thus far, 617,341 shares of Alexion Pharmaceuticals exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $88.26-$90.55 after having opened the day at $88.26 as compared to the previous trading day's close of $88.25.

Alexion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of biologic therapeutic products in the United States, Europe, Latin America, Japan, and the Asia Pacific. Alexion Pharmaceuticals has a market cap of $17.4 billion and is part of the health care sector. The company has a P/E ratio of 79.2, above the S&P 500 P/E ratio of 17.7. Shares are up 23.4% year to date as of the close of trading on Thursday. Currently there are 15 analysts that rate Alexion Pharmaceuticals a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Alexion Pharmaceuticals as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Alexion Pharmaceuticals Ratings Report now.

1. As of noon trading, Biogen Idec ( BIIB) is up $2.32 (1.7%) to $140.25 on heavy volume Thus far, 1.0 million shares of Biogen Idec exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $137.60-$141.43 after having opened the day at $137.60 as compared to the previous trading day's close of $137.93.

Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Biogen Idec has a market cap of $32.2 billion and is part of the health care sector. The company has a P/E ratio of 23.7, above the S&P 500 P/E ratio of 17.7. Shares are up 23.9% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Biogen Idec a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Biogen Idec 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 solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Biogen Idec Ratings Report now.

If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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