Actavis PLC (ACT): 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.

Actavis ( ACT) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 1.1%. By the end of trading, Actavis fell $4.20 (-2.3%) to $181.80 on average volume. Throughout the day, 1,889,387 shares of Actavis exchanged hands as compared to its average daily volume of 1,272,200 shares. The stock ranged in price between $181.28-$186.34 after having opened the day at $186.00 as compared to the previous trading day's close of $186.00. Other companies within the Drugs industry that declined today were: Pain Therapeutics ( PTIE), down 14.3%, Oramed Pharmaceuticals ( ORMP), down 13.1%, iBio ( IBIO), down 11.2% and Rexahn Pharmaceuticals ( RNN), down 10.3%.

Actavis plc, an integrated specialty pharmaceutical company, develops, manufactures, markets, and distributes pharmaceutical products in the United States, Canada, and internationally. Actavis has a market cap of $31.6 billion and is part of the health care sector. Shares are up 10.7% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Actavis a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Actavis as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

On the positive front, Chelsea Therapeutics International ( CHTP), up 91.7%, Agios Pharmaceuticals ( AGIO), up 18.6%, Kindred Biosciences ( KIN), up 16.0% and Amarin Corporation ( AMRN), up 15.9% , 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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