Merck & Co Inc (MRK): 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.

Merck ( MRK) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day down 3.5%. By the end of trading, Merck fell $0.89 (-1.7%) to $52.08 on average volume. Throughout the day, 15,215,122 shares of Merck exchanged hands as compared to its average daily volume of 12,446,500 shares. The stock ranged in price between $51.92-$53.15 after having opened the day at $52.91 as compared to the previous trading day's close of $52.97. Other companies within the Drugs industry that declined today were: Oramed Pharmaceuticals ( ORMP), down 24.1%, Galena Biopharma ( GALE), down 19.9%, Vanda Pharmaceuticals ( VNDA), down 16.0% and PTC Therapeutics ( PTCT), down 14.5%.

Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products worldwide. Merck has a market cap of $156.4 billion and is part of the health care sector. The company has a P/E ratio of 35.9, above the S&P 500 P/E ratio of 17.7. Shares are up 5.8% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate Merck a buy, no analysts rate it a sell, and 8 rate it a hold.

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

On the positive front, Lifevantage Corporation ( LFVN), up 8.9%, IntelliPharmaCeutics International ( IPCI), up 8.1%, Ohr Pharmaceutical ( OHRP), up 7.0% and Redhill Biopharma ( RDHL), up 6.8% , were all gainers within the drugs industry with Herbalife ( HLF) 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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