Biogen Idec Inc (BIIB): 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

Biogen Idec ( BIIB) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Biogen Idec fell $2.83 (-1.3%) to $222.19 on light volume. Throughout the day, 996,298 shares of Biogen Idec exchanged hands as compared to its average daily volume of 1,446,500 shares. The stock 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. Other companies within the Drugs industry that declined today were: Dynavax Technologies Corporation ( DVAX), down 43.3%, Echo Therapeutics ( ECTE), down 25.8%, Aoxing Pharmaceutical Company ( AXN), down 15.4% and Senesco Technologies ( SNTI), down 9.1%.
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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.

On the positive front, Cormedix ( CRMD), down 24.3%, Cardium Therapeutics ( CXM), down 18.4%, ACADIA Pharmaceuticals ( ACAD), down 14.8% and OvaScience ( OVAS), down 11.4% , were all gainers within the drugs industry with Teva Pharmaceutical Industries ( TEVA) 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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