5 Drugs Stocks Dragging The Industry Down

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 8 points (0.1%) at 15,256 as of Monday, June 10, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,353 issues advancing vs. 1,578 declining with 107 unchanged.

The Drugs industry currently sits up 0.5% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the industry include Dynavax Technologies Corporation ( DVAX), down 35.43, and Alexion Pharmaceuticals ( ALXN), down 1.66. A company within the industry that increased today was Novo Nordisk A/S ( NVO), up 0.59.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Vertex Pharmaceuticals ( VRTX) is one of the companies pushing the Drugs industry lower today. As of noon trading, Vertex Pharmaceuticals is down $0.81 (-1.0%) to $82.00 on light volume Thus far, 591,687 shares of Vertex Pharmaceuticals exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $81.20-$82.90 after having opened the day at $82.66 as compared to the previous trading day's close of $82.81.

Vertex Pharmaceuticals Incorporated engages in discovering, developing, manufacturing, and commercializing small molecule drugs for patients with serious diseases. Vertex Pharmaceuticals has a market cap of $17.3 billion and is part of the health care sector. Shares are up 86.2% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Vertex Pharmaceuticals a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Vertex Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow. Get the full Vertex Pharmaceuticals Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

4. As of noon trading, Regeneron Pharmaceuticals ( REGN) is down $5.50 (-2.1%) to $252.00 on light volume Thus far, 242,202 shares of Regeneron Pharmaceuticals exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $250.54-$258.60 after having opened the day at $258.14 as compared to the previous trading day's close of $257.50.

Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions in the United States and internationally. Regeneron Pharmaceuticals has a market cap of $24.2 billion and is part of the health care sector. The company has a P/E ratio of 33.4, above the S&P 500 P/E ratio of 17.7. Shares are up 47.4% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Regeneron Pharmaceuticals a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Regeneron Pharmaceuticals as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Regeneron Pharmaceuticals Ratings Report now.

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3. As of noon trading, Biogen Idec ( BIIB) is down $2.82 (-1.2%) to $222.20 on light volume Thus far, 533,762 shares of Biogen Idec exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $220.47-$226.60 after having opened the day at $225.81 as compared to the previous trading day's close of $225.02.

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 $52.5 billion and is part of the health care sector. The company has a P/E ratio of 35.1, above the S&P 500 P/E ratio of 17.7. Shares are up 51.1% year to date as of the close of trading on Friday. 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. Get the full Biogen Idec Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Celgene Corporation ( CELG) is down $1.40 (-1.2%) to $119.01 on light volume Thus far, 1.1 million shares of Celgene Corporation exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $118.18-$121.00 after having opened the day at $120.91 as compared to the previous trading day's close of $120.41.

Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes therapies for the treatment of cancer and immune-inflammatory related diseases in the United States, Europe, and other countries. Celgene Corporation has a market cap of $48.2 billion and is part of the health care sector. The company has a P/E ratio of 35.1, above the S&P 500 P/E ratio of 17.7. Shares are up 47.3% year to date as of the close of trading on Friday. Currently there are 21 analysts that rate Celgene Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Celgene Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Celgene Corporation Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Amgen ( AMGN) is down $0.57 (-0.6%) to $98.24 on light volume Thus far, 1.5 million shares of Amgen exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $98.08-$99.44 after having opened the day at $98.95 as compared to the previous trading day's close of $98.81.

Amgen Inc., a biotechnology medicines company, engages in the discovery, development, manufacture, and marketing of human therapeutic products in the areas of supportive cancer care, inflammation, nephrology, and bone diseases primarily in the United States, Europe, and Canada. Amgen has a market cap of $73.1 billion and is part of the health care sector. The company has a P/E ratio of 16.5, below the S&P 500 P/E ratio of 17.7. Shares are up 13.1% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Amgen a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Amgen as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Amgen Ratings Report now.

STOCKS TO BUY: 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 5 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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