Eli Lilly And Company (LLY): 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

Eli Lilly and Company ( LLY) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Eli Lilly and Company fell $0.60 (-1.1%) to $54.14 on average volume. Throughout the day, 4,872,304 shares of Eli Lilly and Company exchanged hands as compared to its average daily volume of 5,092,700 shares. The stock ranged in price between $53.89-$54.50 after having opened the day at $54.50 as compared to the previous trading day's close of $54.74. Other companies within the Drugs industry that declined today were: 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%.
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Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. Eli Lilly and Company has a market cap of $61.9 billion and is part of the health care sector. The company has a P/E ratio of 13.2, below the S&P 500 P/E ratio of 17.7. Shares are up 11.0% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Eli Lilly and Company a buy, 4 analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Eli Lilly and Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, ZIOPHARM Oncology ( ZIOP), down 29.8%, Oragenics ( OGEN), down 21.4%, Vanda Pharmaceuticals ( VNDA), down 17.7% and Valeant Pharmaceuticals International ( VRX), down 13.1% , were all gainers within the drugs industry with Biogen Idec ( BIIB) 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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