Biogen Idec Inc (BIIB): 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

Biogen Idec ( BIIB) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.6%. By the end of trading, Biogen Idec rose $2.62 (1.1%) to $235.24 on light volume. Throughout the day, 815,145 shares of Biogen Idec exchanged hands as compared to its average daily volume of 1,383,700 shares. The stock ranged in a price between $229.35-$235.40 after having opened the day at $230.87 as compared to the previous trading day's close of $232.62. Other companies within the Drugs industry that increased today were: ZIOPHARM Oncology ( ZIOP), up 29.8%, Oragenics ( OGEN), up 21.4%, Vanda Pharmaceuticals ( VNDA), up 17.7% and Valeant Pharmaceuticals International ( VRX), up 13.1%.
  • 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 $55.3 billion and is part of the health care sector. The company has a P/E ratio of 37.0, above the S&P 500 P/E ratio of 17.7. Shares are up 59.2% year to date as of the close of trading on Thursday. 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 impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, GTx ( GTXI), down 9.1%, Bacterin International Holdings ( BONE), down 8.2%, Rexahn Pharmaceuticals ( RNN), down 7.0% and Redhill Biopharma ( RDHL), down 6.9% , were all laggards within the drugs industry with Eli Lilly and Company ( LLY) 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).

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

More from Markets

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Dow Drops Over 100 Points on Trade War Worries

Dow Drops Over 100 Points on Trade War Worries

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists