Gilead Sciences Inc (GILD): Today's Featured Drugs Laggard

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

Gilead ( GILD) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Gilead fell $1.08 (-2.1%) to $50.86 on average volume. Throughout the day, 9,250,333 shares of Gilead exchanged hands as compared to its average daily volume of 10,309,800 shares. The stock ranged in price between $50.53-$52.06 after having opened the day at $51.88 as compared to the previous trading day's close of $51.94. Other companies within the Drugs industry that declined today were: Cardium Therapeutics ( CXM), down 16.9%, Exact Sciences Corporation ( EXAS), down 11.4%, Sinovac Biotech ( SVA), down 9.9% and Acura Pharmaceuticals ( ACUR), down 8.3%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, 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.

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 $79.3 billion and is part of the health care sector. The company has a P/E ratio of 31.7, above the S&P 500 P/E ratio of 17.7. Shares are up 41.6% year to date as of the close of trading on Wednesday.

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.

On the positive front, Catalyst Pharmaceutical Partners ( CPRX), down 19.1%, Theravance ( THRX), down 16.2%, Aoxing Pharmaceutical Company ( AXN), down 15.9% and Cardiome Pharma Corporation ( CRME), down 13.7% , were all gainers within the drugs industry with Shire ( SHPG) 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).

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.