Celgene Corporation (CELG): 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

Celgene Corporation ( CELG) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.9%. By the end of trading, Celgene Corporation rose $4.75 (3.9%) to $127.46 on average volume. Throughout the day, 2,908,834 shares of Celgene Corporation exchanged hands as compared to its average daily volume of 3,197,100 shares. The stock ranged in a price between $123.24-$127.47 after having opened the day at $123.43 as compared to the previous trading day's close of $122.71. Other companies within the Drugs industry that increased today were: Vermillion ( VRML), up 24.7%, Warner Chilcott ( WCRX), up 20.0%, Omeros Corporation ( OMER), up 14.4% and Catalyst Pharmaceutical Partners ( CPRX), up 13.8%.
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Celgene Corporation, a biopharmaceutical company, engages in the discovery, development, and commercialization of various therapies to treat cancer and immune-inflammatory related diseases in the United States, Europe, and other countries. Celgene Corporation has a market cap of $51.2 billion and is part of the health care sector. The company has a P/E ratio of 37.3, above the S&P 500 P/E ratio of 17.7. Shares are up 56.4% year to date as of the close of trading on Thursday. Currently there are 22 analysts that rate Celgene Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Celgene Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Pain Therapeutics ( PTIE), down 49.6%, Durect Corporation ( DRRX), down 34.0%, Affymax ( AFFY), down 24.9% and Optimer Pharmaceuticals ( OPTR), down 14.1% , were all laggards within the drugs industry with Medivation ( MDVN) 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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