Perrigo Company (PRGO): Today's Featured Drugs Winner

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.

Perrigo Company ( PRGO) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day down 0.1%. By the end of trading, Perrigo Company rose $3.10 (2.9%) to $111.40 on heavy volume. Throughout the day, 1.3 million shares of Perrigo Company exchanged hands as compared to its average daily volume of 788,000 shares. The stock ranged in a price between $109.02-$111.89 after having opened the day at $109.50 as compared to the previous trading day's close of $108.30. Other companies within the Drugs industry that increased today were: Oramed Pharmaceuticals ( ORMP), up 26.7%, Celsion Corporation ( CLSN), up 19.4%, Rexahn Pharmaceuticals ( RNN), up 18.4%, and Amyris ( AMRS), up 15.4%.
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Perrigo Company, through its subsidiaries, develops, manufactures, and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, and active pharmaceutical ingredients (API) worldwide. Perrigo Company has a market cap of $10.04 billion and is part of the health care sector. The company has a P/E ratio of 23.2, above the S&P 500 P/E ratio of 17.7. Shares are up 2.7% year to date as of the close of trading on Friday. Currently there are nine analysts that rate Perrigo Company a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Perrigo Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Prima Biomed ( PBMD), down 18%, Oxygen Biotherapeutics ( OXBT), down 10.3%, Cormedix ( CRMD), down 9.4%, and Lannett Incorporated ( LCI), down 7.5%, were all laggards within the drugs industry with Novo Nordisk A/S ( NVO) being today's drugs industry laggard.

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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