Celgene Corporation (CELG): Drugs' Featured Daily 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.

Celgene Corporation ( CELG) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole was unchanged today. By the end of trading, Celgene Corporation fell $1.34 (-1.2%) to $111.79 on light volume. Throughout the day, 2.5 million shares of Celgene Corporation exchanged hands as compared to its average daily volume of 3.8 million shares. The stock ranged in price between $111.07-$113.71 after having opened the day at $112.89 as compared to the previous trading day's close of $113.13. Other companies within the Drugs industry that declined today were: Idenix Pharmaceuticals ( IDIX), down 19.8%, Redhill Biopharma ( RDHL), down 15.1%, Cell Therapeutics ( CTIC), down 13%, and Halozyme Therapeutics ( HALO), down 12.3%.
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Celgene Corporation, a biopharmaceutical company, engages in the discovery, development, and commercialization of various therapies to treat cancer and immune-inflammatory related diseases in the United States, Europe, and other countries. Celgene Corporation has a market cap of $47.03 billion and is part of the health care sector. The company has a P/E ratio of 34, above the S&P 500 P/E ratio of 17.7. Shares are up 42.8% year to date as of the close of trading on Friday. Currently there are 23 analysts that rate Celgene Corporation a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Celgene Corporation 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. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Novogen ( NVGN), up 15.7%, Horizon Pharma ( HZNP), up 14.3%, ACADIA Pharmaceuticals ( ACAD), up 9.8%, and Repros Therapeutics ( RPRX), up 8.7%, were all gainers within the drugs industry with Onyx Pharmaceuticals ( ONXX) 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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