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 Bristol-Myers Squibb Company (
BMY) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Bristol-Myers Squibb Company fell $1.23 (-3.0%) to $40.22 on average volume. Throughout the day, 13,685,847 shares of Bristol-Myers Squibb Company exchanged hands as compared to its average daily volume of 9,429,500 shares. The stock ranged in price between $40.03-$40.91 after having opened the day at $40.82 as compared to the previous trading day's close of $41.45. Other companies within the Drugs industry that declined today were:
Supernus Pharmaceuticals (
SUPN), down 13.1%,
Anacor Pharmaceuticals (
ANAC), down 12.5%,
Enanta Pharmaceuticals (
ENTA), down 11.8% and
ARCA biopharma (
ABIO), down 8.8%.
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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 $69.5 billion and is part of the health care sector. The company has a P/E ratio of 36.5, above the S&P 500 P/E ratio of 17.7. Shares are up 27.2% year to date as of the close of trading on Wednesday.
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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
On the positive front,
Albany Molecular Research (
AMRI), down 12.2%,
Arrowhead Research Corporation (
ARWR), down 11.8%,
Insmed (
INSM), down 11.3% and
Alexion Pharmaceuticals (
ALXN), down 10.8% , were all gainers within the drugs industry with
Gilead (
GILD) 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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