Amgen Inc (AMGN): 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

Amgen ( AMGN) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 0.8%. By the end of trading, Amgen fell $1.09 (-1.1%) to $97.42 on light volume. Throughout the day, 2,306,164 shares of Amgen exchanged hands as compared to its average daily volume of 3,908,500 shares. The stock ranged in price between $96.92-$98.90 after having opened the day at $98.23 as compared to the previous trading day's close of $98.51. Other companies within the Drugs industry that declined today were: Biota Pharmaceuticals ( BOTA), down 67.9%, Mast Therapeutics ( MSTX), down 30.9%, Cempra ( CEMP), down 13.9% and Celsion Corporation ( CLSN), down 13.3%.
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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 $72.3 billion and is part of the health care sector. The company has a P/E ratio of 16.3, below the S&P 500 P/E ratio of 17.7. Shares are up 14.3% year to date as of the close of trading on Thursday. 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.

On the positive front, Codexis ( CDXS), down 25.4%, Delcath Systems ( DCTH), down 14.9%, Cormedix ( CRMD), down 10.0% and Cardium Therapeutics ( CXM), down 9.7% , were all gainers within the drugs industry with Herbalife ( HLF) 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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