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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 11 points (-0.1%) at 15,227 as of Tuesday, June 11, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 560 issues advancing vs. 2,425 declining with 97 unchanged.

The Drugs industry currently sits up 0.1% versus the S&P 500, which is down 0.37. On the negative front, top decliners within the industry include Merck ( MRK), down 1.10, and Novartis ( NVS), down 0.47. Top gainers within the industry include Alexion Pharmaceuticals ( ALXN), up 3.8%, Celgene Corporation ( CELG), up 1.5% and Amgen ( AMGN), up 0.5%.

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

5. Forest Laboratories ( FRX) is one of the companies pushing the Drugs industry lower today. As of noon trading, Forest Laboratories is down $0.90 (-2.2%) to $40.13 on heavy volume Thus far, 1.4 million shares of Forest Laboratories exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $39.78-$40.51 after having opened the day at $40.51 as compared to the previous trading day's close of $41.03.

Forest Laboratories, Inc. develops, manufactures, and sells branded forms of ethical drug products primarily in the United States and Europe. Forest Laboratories has a market cap of $10.8 billion and is part of the health care sector. Shares are up 14.5% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Forest Laboratories a buy, 2 analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Forest Laboratories 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, 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 Forest Laboratories 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, AstraZeneca ( AZN) is down $0.28 (-0.5%) to $51.12 on average volume Thus far, 1.4 million shares of AstraZeneca exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $50.81-$51.20 after having opened the day at $50.83 as compared to the previous trading day's close of $51.40.

AstraZeneca PLC engages in the discovery, development, and commercialization of prescription medicines for cardiovascular, gastrointestinal, neuroscience, infection, oncology, and respiratory and inflammation diseases worldwide. AstraZeneca has a market cap of $64.3 billion and is part of the health care sector. The company has a P/E ratio of 10.3, below the S&P 500 P/E ratio of 17.7. Shares are up 8.8% year to date as of the close of trading on Monday. Currently there is 1 analyst that rates AstraZeneca a buy, 2 analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates AstraZeneca 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, attractive valuation levels, good cash flow from operations, expanding profit margins 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 AstraZeneca 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.

3. As of noon trading, Sanofi ( SNY) is down $0.28 (-0.5%) to $53.00 on light volume Thus far, 267,195 shares of Sanofi exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $52.65-$53.31 after having opened the day at $52.73 as compared to the previous trading day's close of $53.29.

Sanofi researches, develops, manufactures, and markets healthcare products worldwide. The company operates through Pharmaceuticals, Human Vaccines, and Animal Health segments. Sanofi has a market cap of $143.1 billion and is part of the health care sector. The company has a P/E ratio of 28.7, above the S&P 500 P/E ratio of 17.7. Shares are up 12.5% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Sanofi a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Sanofi as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Sanofi 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, Eli Lilly and Company ( LLY) is down $0.42 (-0.8%) to $52.22 on average volume Thus far, 2.6 million shares of Eli Lilly and Company exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $51.84-$52.32 after having opened the day at $52.23 as compared to the previous trading day's close of $52.64.

Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. Eli Lilly and Company has a market cap of $59.1 billion and is part of the health care sector. The company has a P/E ratio of 12.6, below the S&P 500 P/E ratio of 17.7. Shares are up 6.4% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Eli Lilly and Company a buy, 3 analysts rate it a sell, and 6 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. Get the full Eli Lilly and Company 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, Abbott Laboratories ( ABT) is down $0.37 (-1.0%) to $37.12 on light volume Thus far, 2.2 million shares of Abbott Laboratories exchanged hands as compared to its average daily volume of 7.2 million shares. The stock has ranged in price between $36.88-$37.31 after having opened the day at $37.07 as compared to the previous trading day's close of $37.49.

Abbott Laboratories engages in the discovery, development, manufacture, and sale of health care products worldwide. Abbott Laboratories has a market cap of $58.5 billion and is part of the health care sector. The company has a P/E ratio of 9.8, below the S&P 500 P/E ratio of 17.7. Shares are up 14.5% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Abbott Laboratories a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Abbott Laboratories as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share. Get the full Abbott Laboratories 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 4 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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