Biogen Idec Inc (BIIB): 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.

Biogen Idec ( BIIB) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 2.1%. By the end of trading, Biogen Idec fell $3.04 (-1.9%) to $161.36 on average volume. Throughout the day, 1.2 million shares of Biogen Idec exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $161.25-$166.95 after having opened the day at $164.09 as compared to the previous trading day's close of $164.40. Other companies within the Drugs industry that declined today were: Affymax ( AFFY), down 85.3%, Dynavax Technologies Corporation ( DVAX), down 32.3%, TrovaGene ( TROV), down 13.5%, and Peregrine Pharmaceuticals ( PPHM), down 12%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Biogen Idec has a market cap of $38.42 billion and is part of the health care sector. The company has a P/E ratio of 28.2, above the S&P 500 P/E ratio of 17.7. Shares are up 11.1% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Biogen Idec a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Biogen Idec 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, solid stock price performance 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 positive front, EntreMed ( ENMD), up 25.3%, ProPhase Labs ( PRPH), up 12.9%, Venaxis ( APPY), up 12.2%, and Galectin Therapeutics ( GALT), up 10.9%, 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Illumina Lights the Way for Biotechs

Illumina Lights the Way for Biotechs

European Pharma Companies Slip on MS Pricing Probe

Biogen Stock Climbs After Goldman Adds to its 'Conviction Buy' List

Pfizer's Poor Earnings Feed the Allergan Tie-Up Fire