Warner Chilcott PLC (WCRX): 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.

Warner Chilcott ( WCRX) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 1%. By the end of trading, Warner Chilcott fell 16 cents (-1.2%) to $12.70 on average volume. Throughout the day, 4.4 million shares of Warner Chilcott exchanged hands as compared to its average daily volume of 4.5 million shares. The stock ranged in price between $12.52-$12.80 after having opened the day at $12.72 as compared to the previous trading day's close of $12.86. Other companies within the Drugs industry that declined today were: Codexis ( CDXS), down 9.8%, Acura Pharmaceuticals ( ACUR), down 9.5%, Achillion Pharmaceuticals ( ACHN), down 9.3%, and Anika Therapeutics ( ANIK), down 8%.
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Warner Chilcott plc, a specialty pharmaceutical company, focuses on the development, manufacture, and promotion of branded pharmaceutical products in women's healthcare, gastroenterology, dermatology, and urology segments in North America and western Europe markets. Warner Chilcott has a market cap of $3.14 billion and is part of the health care sector. The company has a P/E ratio of 13.3, below the S&P 500 P/E ratio of 17.7. Shares are down 2.1% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Warner Chilcott a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates Warner Chilcott as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

On the positive front, Peregrine Pharmaceuticals ( PPHM), up 80%, EntreMed ( ENMD), up 26.3%, Inovio Pharmaceuticals ( INO), up 17%, and Chelsea Therapeutics International ( CHTP), up 13.7%, were all gainers within the drugs industry with Gilead ( GILD) 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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