Amgen Inc (AMGN): Today's Highlighted Performer In Drugs

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.

Amgen ( AMGN) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.5%. By the end of trading, Amgen rose $2.36 (2.4%) to $102.51 on average volume. Throughout the day, 5.3 million shares of Amgen exchanged hands as compared to its average daily volume of 5.8 million shares. The stock ranged in a price between $99.79-$102.62 after having opened the day at $99.84 as compared to the previous trading day's close of $100.15. Other companies within the Drugs industry that increased today were: Repros Therapeutics ( RPRX), up 76.3%, Affymax ( AFFY), up 10.9%, Cell Therapeutics ( CTIC), up 10.6%, and NovaBay Pharmaceuticals ( NBY), up 9.4%.
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Amgen Inc., a biotechnology medicines company, engages in the discovery, development, manufacture, and marketing of human therapeutic products in the areas of supportive cancer care, inflammation, nephrology, and bone diseases primarily in the United States, Europe, and Canada. Amgen has a market cap of $73.84 billion and is part of the health care sector. The company has a P/E ratio of 17.9, above the S&P 500 P/E ratio of 17.7. Shares are up 16.2% year to date as of the close of trading on Wednesday. Currently there are 13 analysts that rate Amgen a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Amgen as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, 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.

On the negative front, Accelr8 Technology Corporation ( AXK), down 14.7%, Accelerate Diagnostics ( AXDX), down 14.7%, Atossa Genetics ( ATOS), down 8.4%, and Hemispherx Biopharma ( HEB), down 8.3%, were all laggards within the drugs industry with Ariad Pharmaceuticals ( ARIA) 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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