Allergan Inc. (AGN): 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

Allergan ( AGN) 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, Allergan fell $1.43 (-1.4%) to $103.31 on average volume. Throughout the day, 2,110,373 shares of Allergan exchanged hands as compared to its average daily volume of 1,663,100 shares. The stock ranged in price between $103.16-$105.22 after having opened the day at $104.78 as compared to the previous trading day's close of $104.74. Other companies within the Drugs industry that declined today were: Synta Pharmaceuticals ( SNTA), down 13.4%, Cormedix ( CRMD), down 12.5%, Coronado Biosciences ( CNDO), down 10.2% and Isis Pharmaceuticals ( ISIS), down 10.2%.
  • 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.

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 $31.0 billion and is part of the health care sector. The company has a P/E ratio of 28.0, 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 Tuesday. Currently there are 16 analysts that rate Allergan a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Allergan as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, notable return on equity, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Affymax ( AFFY), down 25.2%, Alexza Pharmaceuticals ( ALXA), down 22.1%, Clovis Oncology ( CLVS), down 12.4% and Merrimack Pharmaceuticals ( MACK), down 11.6% , were all gainers within the drugs industry with Shire ( SHPG) 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.