Onyx Pharmaceuticals Inc. (ONXX): 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.

Onyx Pharmaceuticals ( ONXX) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 0.7%. By the end of trading, Onyx Pharmaceuticals fell $1.55 (-2%) to $76.69 on light volume. Throughout the day, 716,765 shares of Onyx Pharmaceuticals exchanged hands as compared to its average daily volume of one million shares. The stock ranged in price between $76.35-$78.20 after having opened the day at $78.09 as compared to the previous trading day's close of $78.24. Other companies within the Drugs industry that declined today were: Ventrus Biosciences ( VTUS), down 22.9%, Halozyme Therapeutics ( HALO), down 11.7%, Theratechnologies ( THER), down 10.3%, and Aoxing Pharmaceutical Company ( AXN), down 9.4%.
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Onyx Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of therapies that target the molecular mechanisms that cause cancer in the United States and internationally. Onyx Pharmaceuticals has a market cap of $5.2 billion and is part of the health care sector. The company has a P/E ratio of 66.8, above the S&P 500 P/E ratio of 17.7. Shares are up 2.6% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate Onyx Pharmaceuticals a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Onyx Pharmaceuticals as a hold. 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 and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

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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