GlaxoSmithKline PLC (GSK): 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

GlaxoSmithKline ( GSK) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day down 1.3%. By the end of trading, GlaxoSmithKline rose $0.60 (1.2%) to $52.41 on average volume. Throughout the day, 3,355,583 shares of GlaxoSmithKline exchanged hands as compared to its average daily volume of 2,929,800 shares. The stock ranged in a price between $52.24-$52.97 after having opened the day at $52.94 as compared to the previous trading day's close of $51.81. Other companies within the Drugs industry that increased today were: Hemispherx Biopharma ( HEB), up 11.0%, Cytokinetics ( CYTK), up 10.2%, Aoxing Pharmaceutical Company ( AXN), up 9.9% and Albany Molecular Research ( AMRI), up 9.4%.
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GlaxoSmithKline plc, together with its subsidiaries, discovers, develops, manufactures, and markets pharmaceutical products, over-the-counter medicines, and health-related consumer products worldwide. GlaxoSmithKline has a market cap of $140.0 billion and is part of the health care sector. The company has a P/E ratio of 15.6, below the S&P 500 P/E ratio of 17.7. Shares are up 19.2% year to date as of the close of trading on Tuesday. Currently there is 1 analyst that rates GlaxoSmithKline a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates GlaxoSmithKline as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Biota Pharmaceuticals ( BOTA), down 67.3%, Celsion Corporation ( CLSN), down 11.3%, Echo Therapeutics ( ECTE), down 11.3% and Telik ( TELK), down 10.6% , were all laggards within the drugs industry with Johnson & Johnson ( JNJ) 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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