Illumina Inc. (ILMN): 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

Illumina ( ILMN) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day down 1.2%. By the end of trading, Illumina rose $2.23 (3.2%) to $72.16 on average volume. Throughout the day, 1,370,701 shares of Illumina exchanged hands as compared to its average daily volume of 1,353,100 shares. The stock ranged in a price between $68.84-$72.65 after having opened the day at $69.07 as compared to the previous trading day's close of $69.93. Other companies within the Drugs industry that increased today were: Isis Pharmaceuticals ( ISIS), up 29.2%, Hyperion Therapeutics ( HPTX), up 8.9%, Halozyme Therapeutics ( HALO), up 8.7% and Synthetic Biologics ( SYN), up 8.5%.
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Illumina, Inc. develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation and biological function in North America, Europe, Latin America, the Asia-Pacific, the Middle East, and South Africa. Illumina has a market cap of $8.6 billion and is part of the health care sector. The company has a P/E ratio of 92.3, above the S&P 500 P/E ratio of 17.7. Shares are up 24.6% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Illumina a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Illumina as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, 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.

On the negative front, Biostar Pharmaceuticals ( BSPM), down 12.2%, Allergan ( AGN), down 11.6%, Cell Therapeutics ( CTIC), down 10.7% and Senesco Technologies ( SNTI), down 10.3% , were all laggards within the drugs industry with Sanofi ( SNY) 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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