Allergan Inc. (AGN): Today's Featured Drugs Winner

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

Allergan ( AGN) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.8%. By the end of trading, Allergan rose $1.70 (1.5%) to $113.68 on light volume. Throughout the day, 897,149 shares of Allergan exchanged hands as compared to its average daily volume of 1,291,600 shares. The stock ranged in a price between $112.23-$113.76 after having opened the day at $112.36 as compared to the previous trading day's close of $111.98. Other companies within the Drugs industry that increased today were: Galectin Therapeutics ( GALT), up 20.0%, Nymox Pharmaceutical Corporation ( NYMX), up 13.2%, Cardium Therapeutics ( CXM), up 12.4% and Oramed Pharmaceuticals ( ORMP), up 10.8%.
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Allergan, Inc. operates as a multi-specialty healthcare company primarily in the United States, Europe, Latin America, and the Asia Pacific. Allergan has a market cap of $33.2 billion and is part of the health care sector. The company has a P/E ratio of 31.1, above the S&P 500 P/E ratio of 17.7. Shares are up 22.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates Allergan 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, impressive record of earnings per share growth, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Auxilium Pharmaceuticals ( AUXL), down 12.7%, Lexicon Pharmaceuticals ( LXRX), down 11.0%, Aastrom Biosciences ( ASTM), down 10.9% and Catalyst Pharmaceutical Partners ( CPRX), down 7.3% , were all laggards within the drugs industry with ACADIA Pharmaceuticals ( ACAD) being today's drugs industry laggard.

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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