5 Stocks Pulling 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 34 points (-0.2%) at 14,831 as of Friday, April 12, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 825 issues advancing vs. 2,080 declining with 130 unchanged.

The Drugs industry currently sits down 0.60 versus the S&P 500, which is down 0.51. A company within the industry that fell today was Novo Nordisk A/S ( NVO), up 0.58.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Valeant Pharmaceuticals International ( VRX) is one of the companies pushing the Drugs industry lower today. As of noon trading, Valeant Pharmaceuticals International is down $0.76 (-1.0%) to $73.03 on light volume Thus far, 411,675 shares of Valeant Pharmaceuticals International exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $72.89-$73.81 after having opened the day at $73.43 as compared to the previous trading day's close of $73.79.

Valeant Pharmaceuticals International, Inc., a specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products and medical devices in the areas of neurology, dermatology, and branded generics. Valeant Pharmaceuticals International has a market cap of $22.2 billion and is part of the health care sector. Shares are up 23.5% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Valeant Pharmaceuticals International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Get the full Valeant Pharmaceuticals International Ratings Report now.

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4. As of noon trading, GlaxoSmithKline ( GSK) is down $0.27 (-0.6%) to $48.25 on heavy volume Thus far, 2.5 million shares of GlaxoSmithKline exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $48.15-$48.48 after having opened the day at $48.46 as compared to the previous trading day's close of $48.52.

GlaxoSmithKline plc, together with its subsidiaries, discovers, develops, manufactures, and markets pharmaceutical products, over-the-counter medicines, and health-related consumer products worldwide. GlaxoSmithKline has a market cap of $128.9 billion and is part of the health care sector. The company has a P/E ratio of 14.4, below the S&P 500 P/E ratio of 17.7. Shares are up 11.6% year to date as of the close of trading on Thursday.

TheStreet Ratings rates GlaxoSmithKline as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full GlaxoSmithKline Ratings Report now.

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3. As of noon trading, Sanofi ( SNY) is down $0.50 (-0.9%) to $52.12 on light volume Thus far, 844,596 shares of Sanofi exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $51.75-$52.26 after having opened the day at $52.15 as compared to the previous trading day's close of $52.62.

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 $140.1 billion and is part of the health care sector. The company has a P/E ratio of 28.1, above the S&P 500 P/E ratio of 17.7. Shares are up 11.1% year to date as of the close of trading on Thursday.

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, Teva Pharmaceutical Industries ( TEVA) is down $0.77 (-2.0%) to $38.59 on average volume Thus far, 1.8 million shares of Teva Pharmaceutical Industries exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $38.53-$39.20 after having opened the day at $39.20 as compared to the previous trading day's close of $39.36.

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes pharmaceutical products worldwide. Teva Pharmaceutical Industries has a market cap of $33.4 billion and is part of the health care sector. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are up 5.4% year to date as of the close of trading on Thursday.

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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1. As of noon trading, Eli Lilly and Company ( LLY) is down $0.35 (-0.6%) to $57.65 on light volume Thus far, 2.0 million shares of Eli Lilly and Company exchanged hands as compared to its average daily volume of 5.7 million shares. The stock has ranged in price between $57.47-$58.34 after having opened the day at $57.77 as compared to the previous trading day's close of $58.00.

Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. Eli Lilly and Company has a market cap of $65.1 billion and is part of the health care sector. The company has a P/E ratio of 15.7, below the S&P 500 P/E ratio of 17.7. Shares are up 17.6% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Eli Lilly and Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Eli Lilly and Company Ratings Report now.

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If you are interested in one of these 4 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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