4 Stocks Pushing The Drugs Industry Lower

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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 57 points (-0.4%) at 13,961 as of Wednesday, Feb. 13, 2013, 11:45 AM ET. The NYSE advances/declines ratio sits at 1,624 issues advancing vs. 1,238 declining with 155 unchanged.

The Drugs industry currently is unchanged today versus the S&P 500, which is unchanged. A company within the industry that increased today was Sanofi ( SNY), up 0.9%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. Seattle Genetics ( SGEN) is one of the companies pushing the Drugs industry lower today. As of noon trading, Seattle Genetics is down $1.20 (-4.1%) to $28.04 on heavy volume Thus far, 982,906 shares of Seattle Genetics exchanged hands as compared to its average daily volume of 754,800 shares. The stock has ranged in price between $28.01-$29.29 after having opened the day at $28.37 as compared to the previous trading day's close of $29.24.

Seattle Genetics, Inc., a biotechnology company, focuses on the development and commercialization of monoclonal antibody-based therapies for cancer. Its product candidate, ADCETRIS, has accelerated approval form the U.S. Seattle Genetics has a market cap of $3.5 billion and is part of the health care sector. Shares are up 27.1% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Seattle Genetics a buy, 2 analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Seattle Genetics as a sell. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share. Get the full Seattle Genetics Ratings Report now.

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3. As of noon trading, Allergan ( AGN) is down $1.01 (-0.9%) to $106.13 on average volume Thus far, 577,237 shares of Allergan exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $106.12-$107.53 after having opened the day at $107.50 as compared to the previous trading day's close of $107.14.

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 $32.3 billion and is part of the health care sector. The company has a P/E ratio of 25.9, above the S&P 500 P/E ratio of 17.7. Shares are up 17.1% year to date as of the close of trading on Tuesday. Currently there are 17 analysts that rate Allergan a buy, no analysts rate it a sell, and 7 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, impressive record of earnings per share growth and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Allergan Ratings Report now.

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2. As of noon trading, Celgene Corporation ( CELG) is down $0.78 (-0.8%) to $98.18 on light volume Thus far, 919,280 shares of Celgene Corporation exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $98.18-$99.40 after having opened the day at $99.07 as compared to the previous trading day's close of $98.96.

Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes various therapies to treat cancer and immune-inflammatory related diseases primarily in the United States and Europe. Celgene Corporation has a market cap of $42.3 billion and is part of the health care sector. The company has a P/E ratio of 20.4, above the S&P 500 P/E ratio of 17.7. Shares are up 27.4% year to date as of the close of trading on Tuesday. Currently there are 23 analysts that rate Celgene Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Celgene Corporation 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, notable return on equity, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Celgene Corporation Ratings Report now.

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1. As of noon trading, Merck ( MRK) is down $0.25 (-0.6%) to $41.20 on average volume Thus far, 6.0 million shares of Merck exchanged hands as compared to its average daily volume of 13.8 million shares. The stock has ranged in price between $41.01-$41.49 after having opened the day at $41.38 as compared to the previous trading day's close of $41.45.

Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. Merck has a market cap of $125.8 billion and is part of the health care sector. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 1.1% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Merck a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Merck as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Merck Ratings Report now.

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If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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