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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 60 points (0.4%) at 15,029 as of Tuesday, May 7, 2013, 12:54 PM ET. The NYSE advances/declines ratio sits at 1,907 issues advancing vs. 994 declining with 159 unchanged.

The Drugs industry currently sits down 0.07 versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the industry include Biogen Idec ( BIIB), down 0.62, and AstraZeneca ( AZN), down 0.46.

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

4. Grifols ( GRFS) is one of the companies pushing the Drugs industry lower today. As of noon trading, Grifols is down $1.13 (-3.9%) to $28.12 on heavy volume Thus far, 2.3 million shares of Grifols exchanged hands as compared to its average daily volume of 352,100 shares. The stock has ranged in price between $27.44-$28.44 after having opened the day at $28.43 as compared to the previous trading day's close of $29.25.

Grifols, S.A., a specialty biopharmaceutical company, develops, manufactures, and distributes a range of plasma derivative products primarily in the European Union, Spain, the United States, and Canada. Grifols has a market cap of $16.6 billion and is part of the health care sector. Shares are up 15.1% year to date as of the close of trading on Monday.

TheStreet Ratings rates Grifols as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Get the full Grifols Ratings Report now.

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3. As of noon trading, Perrigo Company ( PRGO) is down $4.82 (-4.1%) to $114.02 on heavy volume Thus far, 926,449 shares of Perrigo Company exchanged hands as compared to its average daily volume of 561,300 shares. The stock has ranged in price between $113.38-$116.86 after having opened the day at $116.86 as compared to the previous trading day's close of $118.84.

Perrigo Company, through its subsidiaries, develops, manufactures, and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, and active pharmaceutical ingredients (API) worldwide. Perrigo Company has a market cap of $11.2 billion and is part of the health care sector. The company has a P/E ratio of 25.9, above the S&P 500 P/E ratio of 17.7. Shares are up 14.2% year to date as of the close of trading on Monday.

TheStreet Ratings rates Perrigo Company as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, revenue growth, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Perrigo Company Ratings Report now.

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2. As of noon trading, Eli Lilly and Company ( LLY) is down $0.37 (-0.7%) to $54.10 on average volume Thus far, 2.8 million shares of Eli Lilly and Company exchanged hands as compared to its average daily volume of 5.2 million shares. The stock has ranged in price between $54.04-$54.59 after having opened the day at $54.52 as compared to the previous trading day's close of $54.47.

Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. Eli Lilly and Company has a market cap of $61.9 billion and is part of the health care sector. The company has a P/E ratio of 13.2, below the S&P 500 P/E ratio of 17.7. Shares are up 10.4% year to date as of the close of trading on Monday.

TheStreet Ratings rates Eli Lilly and Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, notable return on equity, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Eli Lilly and Company Ratings Report now.

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1. As of noon trading, Gilead ( GILD) is down $0.97 (-1.8%) to $53.46 on average volume Thus far, 7.1 million shares of Gilead exchanged hands as compared to its average daily volume of 11.2 million shares. The stock has ranged in price between $53.34-$54.60 after having opened the day at $54.37 as compared to the previous trading day's close of $54.43.

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 $84.0 billion and is part of the health care sector. The company has a P/E ratio of 29.7, above the S&P 500 P/E ratio of 17.7. Shares are up 50.2% year to date as of the close of trading on Monday.

TheStreet Ratings rates Gilead as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, increase in net income and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Gilead Ratings Report now.

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.

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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