Shire PLC (SHPG): Today's Featured Drugs Winner

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Shire ( SHPG) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole was unchanged today. By the end of trading, Shire rose $1.36 (1.2%) to $109.95 on light volume. Throughout the day, 237,550 shares of Shire exchanged hands as compared to its average daily volume of 554,000 shares. The stock ranged in a price between $109.43-$109.99 after having opened the day at $109.59 as compared to the previous trading day's close of $108.59. Other companies within the Drugs industry that increased today were: Reliv' International ( RELV), up 54.8%, Synta Pharmaceuticals ( SNTA), up 41.3%, Idera Pharmaceuticals ( IDRA), up 38.0% and GW Pharmaceuticals PLC ADR ( GWPH), up 17.0%.

Shire plc, a specialty biopharmaceutical company, engages in the research and development, manufacture, sale, and distribution of pharmaceutical products. It operates in three segments: Specialty Pharmaceuticals (SP), Human Genetic Therapies (HGT), and Regenerative Medicine (RM). Shire has a market cap of $20.1 billion and is part of the health care sector. Shares are up 18.3% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Shire a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Shire 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, increase in stock price during the past year, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Mast Therapeutics ( MSTX), down 37.9%, Hyperion Therapeutics ( HPTX), down 8.2%, Chelsea Therapeutics International ( CHTP), down 8.1% and Merus Labs International ( MSLI), down 6.9% , were all laggards within the drugs industry with Allergan ( AGN) 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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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