Biogen Idec Inc (BIIB): 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

Biogen Idec ( BIIB) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole was unchanged today. By the end of trading, Biogen Idec fell $3.18 (-1.5%) to $212.55 on average volume. Throughout the day, 1,081,044 shares of Biogen Idec exchanged hands as compared to its average daily volume of 1,390,100 shares. The stock ranged in price between $211.63-$216.62 after having opened the day at $214.81 as compared to the previous trading day's close of $215.73. Other companies within the Drugs industry that declined today were: Synta Pharmaceuticals ( SNTA), down 15.5%, Albany Molecular Research ( AMRI), down 14.3%, Atossa Genetics ( ATOS), down 13.7% and Clovis Oncology ( CLVS), down 13.2%.
  • 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.

Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Biogen Idec has a market cap of $51.9 billion and is part of the health care sector. The company has a P/E ratio of 34.7, above the S&P 500 P/E ratio of 17.7. Shares are up 49.5% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Biogen Idec a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Biogen Idec 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, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Affymax ( AFFY), down 43.7%, Pain Therapeutics ( PTIE), down 14.5%, MediciNova ( MNOV), down 12.3% and Aoxing Pharmaceutical Company ( AXN), down 11.0% , were all gainers within the drugs industry with Sanofi ( SNY) 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.
null

If you liked this article you might like

Illumina Lights the Way for Biotechs

Illumina Lights the Way for Biotechs

European Pharma Companies Slip on MS Pricing Probe

Biogen Stock Climbs After Goldman Adds to its 'Conviction Buy' List

Pfizer's Poor Earnings Feed the Allergan Tie-Up Fire