Novo Nordisk A/S (NVO): 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

Novo Nordisk A/S ( NVO) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day down 1.2%. By the end of trading, Novo Nordisk A/S rose $2.35 (1.5%) to $163.65 on average volume. Throughout the day, 346,514 shares of Novo Nordisk A/S exchanged hands as compared to its average daily volume of 288,700 shares. The stock ranged in a price between $162.82-$164.37 after having opened the day at $163.88 as compared to the previous trading day's close of $161.30. Other companies within the Drugs industry that increased today were: Novogen ( NVGN), up 30.3%, Infinity Pharmaceuticals ( INFI), up 23.5%, Savient Pharmaceuticals ( SVNT), up 14.3% and Ampio Pharmaceuticals ( AMPE), up 12.6%.
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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.

On the negative front, Rigel Pharmaceuticals ( RIGL), down 18.1%, Pluristem Therapeutic ( PSTI), down 14.4%, Vermillion ( VRML), down 13.0% and BioTime ( BTX), down 12.2% , were all laggards within the drugs industry with Bristol-Myers Squibb Company ( BMY) 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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