4 Stocks Dragging The Drugs Industry Downward

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 46 points (-0.3%) at 14,513 as of Wednesday, March 27, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,149 issues advancing vs. 1,749 declining with 144 unchanged.

The Drugs industry currently sits down 0.3% versus the S&P 500, which is down 0.2%. A company within the industry that increased today was AstraZeneca ( AZN), up 0.5%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. Novo Nordisk A/S ( NVO) is one of the companies pushing the Drugs industry lower today. As of noon trading, Novo Nordisk A/S is down $1.94 (-1.2%) to $161.94 on average volume Thus far, 211,157 shares of Novo Nordisk A/S exchanged hands as compared to its average daily volume of 364,500 shares. The stock has ranged in price between $161.59-$163.25 after having opened the day at $163.25 as compared to the previous trading day's close of $163.88.

Novo Nordisk A/S engages in the discovery, development, manufacture, and marketing of pharmaceutical products primarily in Denmark. It operates in two segments, Diabetes Care and Biopharmaceuticals. Novo Nordisk A/S has a market cap of $90.6 billion and is part of the health care sector. The company has a P/E ratio of 4.0, below the S&P 500 P/E ratio of 17.7. Shares are up 0.4% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate Novo Nordisk A/S a buy, 2 analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Novo Nordisk A/S as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Novo Nordisk A/S Ratings Report now.

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3. As of noon trading, Sanofi ( SNY) is down $0.51 (-1.0%) to $50.03 on average volume Thus far, 1.3 million shares of Sanofi exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $49.36-$50.15 after having opened the day at $49.36 as compared to the previous trading day's close of $50.54.

Sanofi researches, develops, manufactures, and markets healthcare products worldwide. The company operates through Pharmaceuticals, Human Vaccines, and Animal Health segments. Sanofi has a market cap of $134.1 billion and is part of the health care sector. The company has a P/E ratio of 26.9, above the S&P 500 P/E ratio of 17.7. Shares are up 6.7% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Sanofi a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Sanofi 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, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Sanofi Ratings Report now.

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2. As of noon trading, Novartis ( NVS) is down $0.61 (-0.9%) to $70.40 on heavy volume Thus far, 1.7 million shares of Novartis exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $69.83-$70.47 after having opened the day at $69.90 as compared to the previous trading day's close of $71.01.

Novartis AG engages in the research, development, manufacture, and marketing of a range of healthcare products worldwide. Novartis has a market cap of $170.0 billion and is part of the health care sector. The company has a P/E ratio of 18.1, above the S&P 500 P/E ratio of 17.7. Shares are up 12.2% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Novartis a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Novartis as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Novartis Ratings Report now.

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1. As of noon trading, Teva Pharmaceutical Industries ( TEVA) is down $0.29 (-0.7%) to $39.70 on light volume Thus far, 1.5 million shares of Teva Pharmaceutical Industries exchanged hands as compared to its average daily volume of 4.8 million shares. The stock has ranged in price between $39.61-$39.87 after having opened the day at $39.81 as compared to the previous trading day's close of $39.99.

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes pharmaceutical products worldwide. Teva Pharmaceutical Industries has a market cap of $34.3 billion and is part of the health care sector. The company has a P/E ratio of 17.8, equal to the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Teva Pharmaceutical Industries a buy, no analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Teva Pharmaceutical Industries as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself. Get the full Teva Pharmaceutical Industries Ratings Report now.

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If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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