Actavis Inc (ACT): Drugs' Featured Winner Of The Day

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.

Actavis ( ACT) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day down 0.2%. By the end of trading, Actavis rose $1.35 (1.4%) to $97.19 on average volume. Throughout the day, 1.1 million shares of Actavis exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in a price between $94.75-$97.41 after having opened the day at $95.19 as compared to the previous trading day's close of $95.84. Other companies within the Drugs industry that increased today were: Biocryst Pharmaceuticals ( BCRX), up 28.8%, Hemispherx Biopharma ( HEB), up 15.5%, iBio ( IBIO), up 9.8%, and Sinovac Biotech ( SVA), up 9.2%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Actavis, Inc., an integrated specialty pharmaceutical company, engages in developing, manufacturing, marketing, selling, and distributing generic, branded generic, brand, biosimilar, and over-the-counter pharmaceutical products worldwide. Actavis has a market cap of $12.17 billion and is part of the health care sector. The company has a P/E ratio of 125.4, above the S&P 500 P/E ratio of 17.7. Shares are up 11.4% year to date as of the close of trading on Thursday. Currently there are 13 analysts that rate Actavis a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Actavis as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Rigel Pharmaceuticals ( RIGL), down 40.2%, Cardium Therapeutics ( CXM), down 24.7%, Zogenix ( ZGNX), down 12.6%, and IntelliPharmaCeutics International ( IPCI), down 8.6%, were all laggards within the drugs industry with Biogen Idec ( BIIB) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100% See his top picks for 14-days FREE.
null

If you liked this article you might like

Icahn Bets on Allergan's Brett Saunders in Post-Pfizer Era

What Bill Ackman's Voice Could Mean for the Valeant Board Room

What Bill Ackman's Voice Could Mean for the Valeant Board Room

Jim Cramer: There’s No Way We’ll See More Railroad M&A

Federal Reserve to Reassess Global Risks in Minutes on Wednesday

Can Allergan-Pfizer Survive Treasury's New Crackdown on Inversions?