Herbalife Ltd. (HLF): Today's Featured Drugs Laggard

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.

Herbalife ( HLF) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 0.7%. By the end of trading, Herbalife fell $2.67 (-4.1%) to $62.27 on average volume. Throughout the day, 4,138,937 shares of Herbalife exchanged hands as compared to its average daily volume of 3,336,800 shares. The stock ranged in price between $60.51-$65.01 after having opened the day at $65.01 as compared to the previous trading day's close of $64.94. Other companies within the Drugs industry that declined today were: GTx ( GTXI), down 65.5%, Mast Therapeutics ( MSTX), down 43.4%, Epizyme ( EPZM), down 14.1% and Reliv' International ( RELV), down 11.3%.

Herbalife Ltd., a network marketing company, sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, and personal care products worldwide. Herbalife has a market cap of $6.7 billion and is part of the consumer goods sector. Shares are up 97.1% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate Herbalife a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Herbalife as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, expanding profit margins and good cash flow from operations. 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, GW Pharmaceuticals PLC ADR ( GWPH), up 13.6%, Genvec ( GNVC), up 11.1%, MannKind Corporation ( MNKD), up 10.4% and Prana Biotechnology ( PRAN), up 10.2% , were all gainers within the drugs industry with Johnson & Johnson ( JNJ) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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