Eli Lilly And Company (LLY): 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.

Eli Lilly and Company ( LLY) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Eli Lilly and Company fell $1.60 (-3.2%) to $49 on heavy volume. Throughout the day, 18.6 million shares of Eli Lilly and Company exchanged hands as compared to its average daily volume of 8.1 million shares. The stock ranged in price between $48.81-$50 after having opened the day at $49.25 as compared to the previous trading day's close of $50.60. Other companies within the Drugs industry that declined today were: Acura Pharmaceuticals ( ACUR), down 15.2%, MEI Pharma ( MEIP), down 10.2%, Lifevantage Corporation ( LFVN), down 9.4%, and Opexa Therapeutics ( OPXA), down 9.3%.
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Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. Eli Lilly and Company has a market cap of $58.16 billion and is part of the health care sector. The company has a P/E ratio of 13.6, below the S&P 500 P/E ratio of 17.7. Shares are up 20.6% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate Eli Lilly and Company a buy, three analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Eli Lilly and Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, YM Biosciences ( YMI), up 76.7%, Idera Pharmaceuticals ( IDRA), up 35.3%, AspenBio Pharma ( APPY), up 30.1%, and ARCA biopharma ( ABIO), up 24.3%, were all gainers within the drugs industry with Onyx Pharmaceuticals ( ONXX) 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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