Amgen Inc (AMGN): 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.

Amgen ( AMGN) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Amgen fell $1.11 (-1.3%) to $83.61 on average volume. Throughout the day, 5.6 million shares of Amgen exchanged hands as compared to its average daily volume of 5.2 million shares. The stock ranged in price between $83.32-$84.72 after having opened the day at $84.24 as compared to the previous trading day's close of $84.72. Other companies within the Drugs industry that declined today were: Amicus Therapeutics ( FOLD), down 25.7%, ARCA biopharma ( ABIO), down 15.8%, Pacific Biosciences of California ( PACB), down 6%, and AVEO Pharmaceuticals ( AVEO), down 5.9%.
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Amgen Inc., a biotechnology medicines company, discovers, develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe, and Canada. Amgen has a market cap of $65.18 billion and is part of the health care sector. The company has a P/E ratio of 15.2, below the S&P 500 P/E ratio of 17.7. Shares are down 1.5% year to date as of the close of trading on Thursday. Currently there are 13 analysts that rate Amgen a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Amgen as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Pharmacyclics Incorporated ( PCYC), up 8.5%, Lannett Incorporated ( LCI), up 8.4%, MediciNova ( MNOV), up 8.3%, and PharmAthene ( PIP), up 7.4%, were all gainers within the drugs industry with Abbott Laboratories ( ABT) 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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