Johnson & Johnson (JNJ): 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

Johnson & Johnson ( JNJ) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 1.3%. By the end of trading, Johnson & Johnson fell $0.95 (-1.1%) to $83.74 on average volume. Throughout the day, 8,108,213 shares of Johnson & Johnson exchanged hands as compared to its average daily volume of 9,859,300 shares. The stock ranged in price between $83.70-$85.50 after having opened the day at $85.18 as compared to the previous trading day's close of $84.69. Other companies within the Drugs industry that declined today were: Biota Pharmaceuticals ( BOTA), down 67.3%, Celsion Corporation ( CLSN), down 11.3%, Echo Therapeutics ( ECTE), down 11.3% and Telik ( TELK), down 10.6%.
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Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. Johnson & Johnson has a market cap of $239.1 billion and is part of the health care sector. The company has a P/E ratio of 23.2, above the S&P 500 P/E ratio of 17.7. Shares are up 20.8% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Johnson & Johnson a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Johnson & Johnson as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, 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.

On the positive front, Hemispherx Biopharma ( HEB), down 11.0%, Cytokinetics ( CYTK), down 10.2%, Aoxing Pharmaceutical Company ( AXN), down 9.9% and Albany Molecular Research ( AMRI), down 9.4% , were all gainers within the drugs industry with GlaxoSmithKline ( GSK) 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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