Shire PLC (SHPG): 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

Shire ( SHPG) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole was unchanged today. By the end of trading, Shire rose $2.15 (2.5%) to $88.74 on average volume. Throughout the day, 559,217 shares of Shire exchanged hands as compared to its average daily volume of 520,100 shares. The stock ranged in a price between $88.48-$89.25 after having opened the day at $89.04 as compared to the previous trading day's close of $86.59. Other companies within the Drugs industry that increased today were: Affymax ( AFFY), up 25.2%, Alexza Pharmaceuticals ( ALXA), up 22.1%, Clovis Oncology ( CLVS), up 12.4% and Merrimack Pharmaceuticals ( MACK), up 11.6%.
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Shire plc, a specialty biopharmaceutical company, engages in the research and development, manufacture, sale, and distribution of pharmaceutical products. It operates in three segments: Specialty Pharmaceuticals (SP), Human Genetic Therapies (HGT), and Regenerative Medicine (RM). Shire has a market cap of $16.3 billion and is part of the health care sector. The company has a P/E ratio of 22.1, above the S&P 500 P/E ratio of 17.7. Shares are down 5.9% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Shire a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Shire 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, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Synta Pharmaceuticals ( SNTA), down 13.4%, Cormedix ( CRMD), down 12.5%, Coronado Biosciences ( CNDO), down 10.2% and Isis Pharmaceuticals ( ISIS), down 10.2% , were all laggards within the drugs industry with Allergan ( AGN) 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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