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 2.1%. By the end of trading, Perrigo Company rose $1.29 (1.1%) to $114.60 on average volume. Throughout the day, one million shares of Perrigo Company exchanged hands as compared to its average daily volume of 786,700 shares. The stock ranged in a price between $114.60-$116.90 after having opened the day at $115.71 as compared to the previous trading day's close of $113.31. Other companies within the Drugs industry that increased today were: EntreMed ( ENMD), up 25.3%, ProPhase Labs ( PRPH), up 12.9%, Venaxis ( APPY), up 12.2%, and Galectin Therapeutics ( GALT), up 10.9%.
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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 $10.68 billion and is part of the health care sector. The company has a P/E ratio of 24.6, above the S&P 500 P/E ratio of 17.7. Shares are up 9.2% 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. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Affymax ( AFFY), down 85.3%, Dynavax Technologies Corporation ( DVAX), down 32.3%, TrovaGene ( TROV), down 13.5%, and Peregrine Pharmaceuticals ( PPHM), down 12%, were all laggards within the drugs industry with Biogen Idec ( BIIB) 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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