5 Stocks Pushing The Drugs Industry Downward

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 57 points (-0.3%) at 16,357 as of Wednesday, Jan. 22, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,698 issues advancing vs. 1,213 declining with 185 unchanged.

The Drugs industry currently is unchanged today versus the S&P 500, which is down 0.1%.

TheStreet would like to highlight 5 stocks pushing the industry lower today:

5. Novartis ( NVS) is one of the companies pushing the Drugs industry lower today. As of noon trading, Novartis is down $0.65 (-0.8%) to $80.72 on average volume. Thus far, 725,877 shares of Novartis exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $80.66-$80.99 after having opened the day at $80.84 as compared to the previous trading day's close of $81.37.

Novartis AG engages in the research, development, manufacture, and marketing of a range of healthcare products worldwide. Novartis has a market cap of $197.7 billion and is part of the health care sector. The company has a P/E ratio of 20.9, above the S&P 500 P/E ratio of 17.7. Shares are up 1.2% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts that rate Novartis a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Novartis as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Novartis Ratings Report now.

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4. As of noon trading, Vertex Pharmaceuticals ( VRTX) is down $1.19 (-1.4%) to $84.29 on average volume. Thus far, 917,213 shares of Vertex Pharmaceuticals exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $84.04-$87.77 after having opened the day at $85.68 as compared to the previous trading day's close of $85.48.

Vertex Pharmaceuticals Incorporated engages in discovering, developing, manufacturing, and commercializing small molecule drugs for patients with serious diseases. Vertex Pharmaceuticals has a market cap of $19.2 billion and is part of the health care sector. Shares are up 15.1% year-to-date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Vertex Pharmaceuticals a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Vertex Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow. Get the full Vertex Pharmaceuticals Ratings Report now.

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

3. As of noon trading, Valeant Pharmaceuticals International ( VRX) is down $1.05 (-0.8%) to $135.83 on light volume. Thus far, 428,013 shares of Valeant Pharmaceuticals International exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $134.83-$138.05 after having opened the day at $137.85 as compared to the previous trading day's close of $136.88.

Valeant Pharmaceuticals International, Inc., a specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products and medical devices in the areas of neurology, dermatology, and branded generics. Valeant Pharmaceuticals International has a market cap of $46.0 billion and is part of the health care sector. Shares are up 16.6% year-to-date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Valeant Pharmaceuticals International a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Valeant Pharmaceuticals International 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 feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk. Get the full Valeant Pharmaceuticals International Ratings Report now.

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

2. As of noon trading, Allergan ( AGN) is down $3.43 (-2.9%) to $116.64 on heavy volume. Thus far, 2.1 million shares of Allergan exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $115.52-$118.00 after having opened the day at $117.78 as compared to the previous trading day's close of $120.07.

Allergan, Inc. operates as a multi-specialty healthcare company primarily in the United States, Europe, Latin America, and the Asia Pacific. Allergan has a market cap of $35.7 billion and is part of the health care sector. The company has a P/E ratio of 28.4, above the S&P 500 P/E ratio of 17.7. Shares are up 8.1% year-to-date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Allergan a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Allergan 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, notable return on equity, impressive record of earnings per share growth and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Allergan Ratings Report now.

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

1. As of noon trading, Teva Pharmaceutical Industries ( TEVA) is down $0.63 (-1.4%) to $44.68 on average volume. Thus far, 2.5 million shares of Teva Pharmaceutical Industries exchanged hands as compared to its average daily volume of 6.6 million shares. The stock has ranged in price between $44.56-$45.29 after having opened the day at $45.04 as compared to the previous trading day's close of $45.31.

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes pharmaceutical products worldwide. Teva Pharmaceutical Industries has a market cap of $37.4 billion and is part of the health care sector. The company has a P/E ratio of 19.7, above the S&P 500 P/E ratio of 17.7. Shares are up 13.1% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Teva Pharmaceutical Industries a buy, 3 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Teva Pharmaceutical Industries as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow. Get the full Teva Pharmaceutical Industries Ratings Report now.

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

If you are interested in one of these 5 stocks, 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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