Illumina Inc. (ILMN): 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.

Illumina ( ILMN) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole was unchanged today. By the end of trading, Illumina fell 51 cents (-1%) to $49.76 on average volume. Throughout the day, 1.2 million shares of Illumina exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $49.70-$50.80 after having opened the day at $50.47 as compared to the previous trading day's close of $50.27. Other companies within the Drugs industry that declined today were: Peregrine Pharmaceuticals ( PPHM), down 19.9%, Atossa Genetics ( ATOS), down 11.9%, Corcept Therapeutics ( CORT), down 9.8%, and Tianyin Pharmaceutical ( TPI), down 8.2%.
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Illumina, Inc. develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation and biological function in North America, Europe, Latin America, the Asia-Pacific, the Middle East, and South Africa. Illumina has a market cap of $6.2 billion and is part of the health care sector. The company has a P/E ratio of 31.6, above the S&P 500 P/E ratio of 17.7. Shares are down 9.6% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Illumina a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Illumina as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Prima Biomed ( PBMD), up 22.7%, MEI Pharma ( MEIP), up 18.3%, Albany Molecular Research ( AMRI), up 12.8%, and Pharmacyclics Incorporated ( PCYC), up 9.5%, 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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