Today's Drugs Industry Featured Laggard: Forest Laboratories Inc. (FRX)

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.

Forest Laboratories ( FRX) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 1.2%. By the end of trading, Forest Laboratories fell 43 cents (-1.2%) to $35.68 on average volume. Throughout the day, two million shares of Forest Laboratories exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $35.38-$36.44 after having opened the day at $36.26 as compared to the previous trading day's close of $36.11. Other companies within the Drugs industry that declined today were: Sarepta Therapeutics ( SRPT), down 13.4%, Chemocentryx ( CCXI), down 9.7%, Cardium Therapeutics ( CXM), down 8.6%, and Biostar Pharmaceuticals ( BSPM), down 5.3%.
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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 $10.12 billion and is part of the health care sector. The company has a P/E ratio of 88.3, 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 Monday. Currently there are five analysts that rate Forest Laboratories a buy, one analyst rates it a sell, and eight rate it a hold.

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.

On the positive front, Idera Pharmaceuticals ( IDRA), up 19.6%, Oxygen Biotherapeutics ( OXBT), up 14.2%, Acorda Therapeutics ( ACOR), up 12.1%, and Bacterin International Holdings ( BONE), up 9.8%, were all gainers within the drugs industry with Regeneron Pharmaceuticals ( REGN) being today's featured drugs industry leader.

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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