Illumina Inc. (ILMN): 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.

Illumina ( ILMN) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.9%. By the end of trading, Illumina rose $2.09 (4.2%) to $52.22 on heavy volume. Throughout the day, 2.5 million shares of Illumina exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in a price between $50.46-$52.50 after having opened the day at $50.65 as compared to the previous trading day's close of $50.13. Other companies within the Drugs industry that increased today were: Aoxing Pharmaceutical Company ( AXN), up 53.5%, Clovis Oncology ( CLVS), up 15.6%, Prana Biotechnology ( PRAN), up 15.6%, and Curis ( CRIS), up 14.5%.
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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 $6.08 billion and is part of the health care sector. The company has a P/E ratio of 43.4, above the S&P 500 P/E ratio of 17.7. Shares are down 11.8% year to date as of the close of trading on Thursday. 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, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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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