5 Stocks Pushing 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 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. 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 5 stocks pushing the industry lower today:

5. Forest Laboratories ( FRX) is one of the companies pushing the Drugs industry lower today. As of noon trading, Forest Laboratories is down $1.24 (-3.3%) to $36.75 on average volume Thus far, 1.0 million shares of Forest Laboratories exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $36.75-$37.89 after having opened the day at $37.80 as compared to the previous trading day's close of $37.99.

Forest Laboratories, Inc. develops, manufactures, and sells branded forms of ethical drug products primarily in the United States and Europe. Forest Laboratories has a market cap of $10.2 billion and is part of the health care sector. The company has a P/E ratio of 89.1, above the S&P 500 P/E ratio of 17.7. Shares are up 7.6% year to date as of the close of trading on Friday.

TheStreet Ratings rates Forest Laboratories as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. 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 Forest Laboratories Ratings Report now.

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4. As of noon trading, Alexion Pharmaceuticals ( ALXN) is down $1.75 (-1.8%) to $98.35 on light volume Thus far, 511,967 shares of Alexion Pharmaceuticals exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $98.25-$100.04 after having opened the day at $99.71 as compared to the previous trading day's close of $100.10.

Alexion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of life-transforming therapeutic products. Alexion Pharmaceuticals has a market cap of $19.6 billion and is part of the health care sector. The company has a P/E ratio of 78.5, above 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 Friday.

TheStreet Ratings rates Alexion Pharmaceuticals 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, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Alexion Pharmaceuticals Ratings Report now.

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3. As of noon trading, Bristol-Myers Squibb Company ( BMY) is down $0.26 (-0.6%) to $41.16 on light volume Thus far, 3.5 million shares of Bristol-Myers Squibb Company exchanged hands as compared to its average daily volume of 9.7 million shares. The stock has ranged in price between $41.04-$41.50 after having opened the day at $41.34 as compared to the previous trading day's close of $41.42.

Bristol-Myers Squibb Company, a biopharmaceutical company, discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products that help patients prevail over serious diseases worldwide. Bristol-Myers Squibb Company has a market cap of $67.9 billion and is part of the health care sector. The company has a P/E ratio of 35.6, above the S&P 500 P/E ratio of 17.7. Shares are up 27.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates Bristol-Myers Squibb Company as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Bristol-Myers Squibb Company Ratings Report now.

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2. As of noon trading, Celgene Corporation ( CELG) is down $1.02 (-0.8%) to $121.98 on light volume Thus far, 1.1 million shares of Celgene Corporation exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $121.61-$123.01 after having opened the day at $122.50 as compared to the previous trading day's close of $123.00.

Celgene Corporation, a biopharmaceutical company, engages in the discovery, development, and commercialization of various therapies to treat cancer and immune-inflammatory related diseases in the United States, Europe, and other countries. Celgene Corporation has a market cap of $51.5 billion and is part of the health care sector. The company has a P/E ratio of 37.3, above the S&P 500 P/E ratio of 17.7. Shares are up 56.7% year to date as of the close of trading on Friday.

TheStreet Ratings rates Celgene Corporation 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, notable return on equity, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Celgene Corporation Ratings Report now.

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1. As of noon trading, Gilead ( GILD) is down $0.66 (-1.3%) to $51.27 on average volume Thus far, 4.9 million shares of Gilead exchanged hands as compared to its average daily volume of 10.1 million shares. The stock has ranged in price between $51.04-$52.36 after having opened the day at $52.25 as compared to the previous trading day's close of $51.93.

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes human therapeutics for the treatment of life threatening diseases in North America, Europe, and Asia. Gilead has a market cap of $78.7 billion and is part of the health care sector. The company has a P/E ratio of 31.5, above the S&P 500 P/E ratio of 17.7. Shares are up 40.6% year to date as of the close of trading on Friday.

TheStreet Ratings rates Gilead as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Gilead 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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