Novo Nordisk A/S (NVO): 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.

Novo Nordisk A/S ( NVO) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Novo Nordisk A/S fell $26.89 (-14%) to $165.40 on heavy volume. Throughout the day, 2.3 million shares of Novo Nordisk A/S exchanged hands as compared to its average daily volume of 254,300 shares. The stock ranged in price between $163.52-$167.40 after having opened the day at $166.67 as compared to the previous trading day's close of $192.29. Other companies within the Drugs industry that declined today were: Prima Biomed ( PBMD), down 18%, Oxygen Biotherapeutics ( OXBT), down 10.3%, Cormedix ( CRMD), down 9.4%, and Lannett Incorporated ( LCI), down 7.5%.
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Novo Nordisk A/S, a healthcare company, engages in the discovery, development, manufacture, and marketing of pharmaceutical products in Denmark and internationally. The company operates in two segments, Diabetes Care and Biopharmaceuticals. Novo Nordisk A/S has a market cap of $107.64 billion and is part of the health care sector. The company has a P/E ratio of four, below the S&P 500 P/E ratio of 17.7. Shares are up 17.8% year to date as of the close of trading on Friday. Currently there are two analysts that rate Novo Nordisk A/S a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates Novo Nordisk A/S as a buy. 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, notable return on equity, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Oramed Pharmaceuticals ( ORMP), up 26.7%, Celsion Corporation ( CLSN), up 19.4%, Rexahn Pharmaceuticals ( RNN), up 18.4%, and Amyris ( AMRS), up 15.4%, were all gainers within the drugs industry with Perrigo Company ( PRGO) 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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