Hospira Inc. (HSP): 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.

Hospira ( HSP) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Hospira fell 59 cents (-2%) to $29.18 on average volume. Throughout the day, two million shares of Hospira exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $29.06-$29.72 after having opened the day at $29.21 as compared to the previous trading day's close of $29.77. Other companies within the Drugs industry that declined today were: Impax Laboratories ( IPXL), down 26%, MEI Pharma ( MEIP), down 13%, Neostem ( NBS), down 8.9%, and Novogen ( NVGN), down 7.9%.
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Hospira, Inc. provides injectable drugs and infusion technologies to develop, manufacture, distribute, and markets products worldwide. Hospira has a market cap of $4.87 billion and is part of the health care sector. The company has a P/E ratio of 14.7, below the S&P 500 P/E ratio of 17.7. Shares are down 4.7% year to date as of the close of trading on Monday. Currently there are no analysts that rate Hospira a buy, three analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Hospira as a hold. 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 and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.

On the positive front, Acura Pharmaceuticals ( ACUR), up 48.3%, Dyax Corporation ( DYAX), up 19.6%, Galectin Therapeutics ( GALT), up 14.5%, and Santarus ( SNTS), up 11.2%, were all gainers within the drugs industry with Teva Pharmaceutical Industries ( TEVA) 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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