Drugs Stocks On The Rise With Help From 3 Stocks

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 46 points (-0.3%) at 15,208 as of Tuesday, June 4, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,093 issues advancing vs. 1,832 declining with 114 unchanged.

The Drugs industry currently sits down 1.02 versus the S&P 500, which is down 0.24. On the negative front, top decliners within the industry include Biogen Idec ( BIIB), down 3.22, Alexion Pharmaceuticals ( ALXN), down 2.15, Eli Lilly and Company ( LLY), down 1.05, Abbott Laboratories ( ABT), down 0.81 and AstraZeneca ( AZN), down 0.76.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry higher today:

3. Grifols ( GRFS) is one of the companies pushing the Drugs industry higher today. As of noon trading, Grifols is up $0.70 (2.62) to $27.43 on heavy volume Thus far, 732,802 shares of Grifols exchanged hands as compared to its average daily volume of 554,100 shares. The stock has ranged in price between $27.37-$28.04 after having opened the day at $28.00 as compared to the previous trading day's close of $26.73.

Grifols, S.A., a specialty biopharmaceutical company, develops, manufactures, and distributes a range of plasma derivative products primarily in the European Union, Spain, the United States, and Canada. Grifols has a market cap of $15.2 billion and is part of the health care sector. Shares are up 5.1% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Grifols a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Grifols as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Get the full Grifols Ratings Report now.

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2. As of noon trading, Novo Nordisk A/S ( NVO) is up $2.39 (1.48) to $163.69 on heavy volume Thus far, 259,691 shares of Novo Nordisk A/S exchanged hands as compared to its average daily volume of 288,700 shares. The stock has ranged in price between $163.42-$164.37 after having opened the day at $163.88 as compared to the previous trading day's close of $161.30.

Novo Nordisk A/S engages in the discovery, development, manufacture, and marketing of pharmaceutical products primarily in Denmark. It operates in two segments, Diabetes Care and Biopharmaceuticals. Novo Nordisk A/S has a market cap of $88.6 billion and is part of the health care sector. The company has a P/E ratio of 4.0, below the S&P 500 P/E ratio of 17.7. Shares are down 1.3% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Novo Nordisk A/S a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Novo Nordisk A/S 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, compelling growth in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Novo Nordisk A/S Ratings Report now.

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1. As of noon trading, Merck ( MRK) is up $1.31 (2.70) to $49.76 on heavy volume Thus far, 19.8 million shares of Merck exchanged hands as compared to its average daily volume of 17.6 million shares. The stock has ranged in price between $48.17-$50.16 after having opened the day at $48.20 as compared to the previous trading day's close of $48.45.

Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products worldwide. Merck has a market cap of $141.0 billion and is part of the health care sector. The company has a P/E ratio of 23.8, above the S&P 500 P/E ratio of 17.7. Shares are up 18.3% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Merck a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates Merck as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, 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. Get the full Merck Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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