Illumina Inc. (ILMN): 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

Illumina ( ILMN) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 1.3%. By the end of trading, Illumina fell $1.18 (-1.7%) to $68.80 on heavy volume. Throughout the day, 2,066,906 shares of Illumina exchanged hands as compared to its average daily volume of 1,207,100 shares. The stock ranged in price between $68.22-$70.25 after having opened the day at $69.68 as compared to the previous trading day's close of $69.98. Other companies within the Drugs industry that declined today were: Genvec ( GNVC), down 33.6%, Redhill Biopharma ( RDHL), down 7.9%, Savient Pharmaceuticals ( SVNT), down 5.0% and Cleveland BioLabs ( CBLI), down 4.9%.
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Illumina, Inc. develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation and biological function in North America, Europe, Latin America, the Asia-Pacific, the Middle East, and South Africa. Illumina has a market cap of $8.4 billion and is part of the health care sector. The company has a P/E ratio of 89.5, above the S&P 500 P/E ratio of 17.7. Shares are up 20.8% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Illumina a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Illumina as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Alimera ( ALIM), down 27.3%, Opexa Therapeutics ( OPXA), down 26.0%, Theravance ( THRX), down 17.9% and MediciNova ( MNOV), down 16.5% , were all gainers within the drugs industry with Pfizer ( PFE) 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).

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