Abbott Laboratories (ABT): 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.

Abbott Laboratories ( ABT) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.8%. By the end of trading, Abbott Laboratories rose 71 cents (2.1%) to $34.31 on light volume. Throughout the day, 6.6 million shares of Abbott Laboratories exchanged hands as compared to its average daily volume of 13.7 million shares. The stock ranged in a price between $33.40-$34.33 after having opened the day at $33.51 as compared to the previous trading day's close of $33.60. Other companies within the Drugs industry that increased today were: Theravance ( THRX), up 16.1%, MEI Pharma ( MEIP), up 14.2%, Clovis Oncology ( CLVS), up 12.1%, and Tesaro ( TSRO), up 11.2%.
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Abbott Laboratories engages in the discovery, development, manufacture, and sale of health care products worldwide. Abbott Laboratories has a market cap of $53.07 billion and is part of the health care sector. The company has a P/E ratio of 9.1, below the S&P 500 P/E ratio of 17.7. Shares are up 3.2% year to date as of the close of trading on Friday. Currently there are nine analysts that rate Abbott Laboratories a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Abbott Laboratories as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

On the negative front, Repros Therapeutics ( RPRX), down 13.9%, DepoMed ( DEPO), down 9.8%, Dynavax Technologies Corporation ( DVAX), down 7.1%, and Cardiome Pharma Corporation ( CRME), down 6.8%, were all laggards within the drugs industry with Arena Pharmaceuticals ( ARNA) 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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