3 Stocks Pushing The Drugs Industry Higher

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 156 points (-1.1%) at 14,709 as of Monday, April 15, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 426 issues advancing vs. 2,527 declining with 106 unchanged.

The Drugs industry currently sits down 2.11 versus the S&P 500, which is down 1.29. Top gainers within the industry include Sanofi ( SNY), up 2.5%, and GlaxoSmithKline ( GSK), up 1.9%. On the negative front, top decliners within the industry include Regeneron Pharmaceuticals ( REGN), down 2.75, Shire ( SHPG), down 2.13, Amgen ( AMGN), down 1.70, Biogen Idec ( BIIB), down 1.50 and Eli Lilly and Company ( LLY), down 0.71.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry higher today:

3. Theravance ( THRX) is one of the companies pushing the Drugs industry higher today. As of noon trading, Theravance is up $4.03 (16.96) to $27.79 on heavy volume Thus far, 3.3 million shares of Theravance exchanged hands as compared to its average daily volume of 984,200 shares. The stock has ranged in price between $25.26-$29.71 after having opened the day at $25.35 as compared to the previous trading day's close of $23.76.

Theravance, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of small molecule medicines primarily for therapeutic areas of respiratory diseases, bacterial infections, and central nervous system (CNS)/pain. Theravance has a market cap of $2.3 billion and is part of the health care sector. Shares are up 4.9% year to date as of the close of trading on Friday.

TheStreet Ratings rates Theravance as a sell. Among the areas we feel are negative, one of the most important has been very high debt management risk by most measures. Get the full Theravance Ratings Report now.

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2. As of noon trading, Novo Nordisk A/S ( NVO) is up $1.16 (0.69) to $169.15 on light volume Thus far, 120,818 shares of Novo Nordisk A/S exchanged hands as compared to its average daily volume of 359,300 shares. The stock has ranged in price between $168.39-$169.70 after having opened the day at $168.70 as compared to the previous trading day's close of $167.99.

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 $94.5 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 2.9% year to date as of the close of trading on Friday.

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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1. As of noon trading, Novartis ( NVS) is up $0.60 (0.82) to $73.85 on average volume Thus far, 696,053 shares of Novartis exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $73.58-$74.22 after having opened the day at $73.71 as compared to the previous trading day's close of $73.25.

Novartis AG engages in the research, development, manufacture, and marketing of a range of healthcare products worldwide. Novartis has a market cap of $177.4 billion and is part of the health care sector. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 15.7% year to date as of the close of trading on Friday.

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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If you are interested in one of these 3 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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