3 Stocks Pushing The Drugs Industry Higher

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 up today with the Dow Jones Industrial Average ( ^DJI) trading down 17 points (-0.1%) at 12,949 as of Tuesday, Nov. 27, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,707 issues advancing vs. 1,183 declining with 148 unchanged.

The Drugs industry currently sits up 0.8% versus the S&P 500, which is up 0.0%. A company within the industry that increased today was ACADIA Pharmaceuticals ( ACAD), up 151.7%. On the negative front, top decliners within the industry include Vertex Pharmaceuticals ( VRTX), down 0.9%, and Gilead ( GILD), down 0.5%.

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

3. Dr. Reddy Laboratories ( RDY) is one of the companies pushing the Drugs industry higher today. As of noon trading, Dr. Reddy Laboratories is up $0.57 (1.8%) to $32.57 on light volume Thus far, 58,679 shares of Dr. Reddy Laboratories exchanged hands as compared to its average daily volume of 221,500 shares. The stock has ranged in price between $32.19-$32.60 after having opened the day at $32.44 as compared to the previous trading day's close of $32.00.

Dr. Reddy's Laboratories Limited operates as an integrated pharmaceutical company. It operates in three segments: Pharmaceutical services and Active Ingredients (PSAI), Global Generics, and Proprietary Products. Dr. Reddy Laboratories has a market cap of $5.4 billion and is part of the health care sector. The company has a P/E ratio of 19.3, above the S&P 500 P/E ratio of 17.7. Shares are up 8.7% year to date as of the close of trading on Monday. Currently there is 1 analyst that rates Dr. Reddy Laboratories a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Dr. Reddy Laboratories 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, reasonable valuation levels, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Dr. Reddy Laboratories Ratings Report now.

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2. As of noon trading, Shire ( SHPG) is up $0.67 (0.8%) to $85.99 on light volume Thus far, 99,025 shares of Shire exchanged hands as compared to its average daily volume of 427,000 shares. The stock has ranged in price between $85.80-$86.11 after having opened the day at $86.04 as compared to the previous trading day's close of $85.32.

Shire plc, a specialty biopharmaceutical company, engages in the research and development, manufacture, sale, and distribution of pharmaceutical products. It operates in three segments: Specialty Pharmaceuticals, Human Genetic Therapies, and Regenerative Medicine. Shire has a market cap of $16.2 billion and is part of the health care sector. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are down 17.9% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Shire a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Shire 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, reasonable valuation levels, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Shire Ratings Report now.

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1. As of noon trading, Teva Pharmaceutical Industries ( TEVA) is up $0.45 (1.1%) to $40.57 on average volume Thus far, 1.3 million shares of Teva Pharmaceutical Industries exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $39.98-$40.63 after having opened the day at $40.11 as compared to the previous trading day's close of $40.12.

Teva Pharmaceutical Industries Limited develops, manufactures, and sells pharmaceutical products worldwide. Teva Pharmaceutical Industries has a market cap of $34.5 billion and is part of the health care sector. The company has a P/E ratio of 10.7, below the S&P 500 P/E ratio of 17.7. Shares are down 1.6% year to date as of the close of trading on Monday. Currently there are 17 analysts that rate Teva Pharmaceutical Industries a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Teva Pharmaceutical Industries as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share. Get the full Teva Pharmaceutical Industries Ratings Report now.

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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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