Allergan Inc. (AGN): 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.

Allergan ( AGN) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 0.9%. By the end of trading, Allergan fell $1.78 (-1.7%) to $105.07 on average volume. Throughout the day, 1.7 million shares of Allergan exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $104.94-$106.25 after having opened the day at $106.25 as compared to the previous trading day's close of $106.85. Other companies within the Drugs industry that declined today were: Bioline Rx ( BLRX), down 16.4%, Celsion Corporation ( CLSN), down 11.4%, Idera Pharmaceuticals ( IDRA), down 9.6%, and Keryx Biopharmaceuticals ( KERX), down 7.7%.
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Allergan, Inc. operates as a multi-specialty healthcare company primarily in the United States, Europe, Latin America, and the Asia Pacific. Allergan has a market cap of $31.56 billion and is part of the health care sector. The company has a P/E ratio of 30.7, above the S&P 500 P/E ratio of 17.7. Shares are up 14.5% year to date as of the close of trading on Friday. Currently there are 16 analysts that rate Allergan a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Allergan 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, solid stock price performance, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Hyperion Therapeutics ( HPTX), up 17.5%, Cleveland BioLabs ( CBLI), up 12.6%, Rexahn Pharmaceuticals ( RNN), up 12.1%, and iBio ( IBIO), up 10.1%, were all gainers within the drugs industry with Herbalife ( HLF) 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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