4 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

One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 3 points (0.0%) at 14,544 as of Monday, April 22, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,423 issues advancing vs. 1,490 declining with 125 unchanged.

The Drugs industry currently sits up 0.4% versus the S&P 500, which is up 0.3%. A company within the industry that fell today was Pfizer ( PFE), up 0.45.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. Valeant Pharmaceuticals International ( VRX) is one of the companies pushing the Drugs industry lower today. As of noon trading, Valeant Pharmaceuticals International is down $0.89 (-1.2%) to $74.63 on light volume Thus far, 443,456 shares of Valeant Pharmaceuticals International exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $74.03-$75.33 after having opened the day at $75.22 as compared to the previous trading day's close of $75.52.

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 $22.1 billion and is part of the health care sector. Shares are up 26.4% year to date as of the close of trading on Friday.

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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3. As of noon trading, Vertex Pharmaceuticals ( VRTX) is down $2.54 (-3.0%) to $83.06 on heavy volume Thus far, 3.7 million shares of Vertex Pharmaceuticals exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $82.34-$87.47 after having opened the day at $84.40 as compared to the previous trading day's close of $85.60.

Vertex Pharmaceuticals Incorporated engages in discovering, developing, manufacturing, and commercializing small molecule drugs for patients with serious diseases. Vertex Pharmaceuticals has a market cap of $11.5 billion and is part of the health care sector. Shares are up 26.2% year to date as of the close of trading on Friday.

TheStreet Ratings rates Vertex Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow. Get the full Vertex Pharmaceuticals Ratings Report now.

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2. As of noon trading, Sanofi ( SNY) is down $0.26 (-0.5%) to $52.70 on heavy volume Thus far, 4.8 million shares of Sanofi exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $51.99-$52.70 after having opened the day at $52.50 as compared to the previous trading day's close of $52.96.

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 $140.9 billion and is part of the health care sector. The company has a P/E ratio of 28.3, above the S&P 500 P/E ratio of 17.7. Shares are up 11.8% year to date as of the close of trading on Friday.

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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1. As of noon trading, Alexion Pharmaceuticals ( ALXN) is down $2.22 (-2.4%) to $90.38 on heavy volume Thus far, 1.6 million 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 $88.86-$93.17 after having opened the day at $92.61 as compared to the previous trading day's close of $92.60.

Alexion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of life-transforming therapeutic products. Alexion Pharmaceuticals has a market cap of $17.9 billion and is part of the health care sector. The company has a P/E ratio of 71.9, above the S&P 500 P/E ratio of 17.7. Shares are down 1.8% 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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If you are interested in one of these 5 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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