3 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.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 29 points (-0.2%) at 16,367 as of Wednesday, March 5, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,229 issues advancing vs. 1,681 declining with 174 unchanged.

The Drugs industry currently sits up 0.2% versus the S&P 500, which is unchanged. On the negative front, top decliners within the industry include XOMA ( XOMA), down 26.1%, Endo International ( ENDP), down 3.6%, Jazz Pharmaceuticals ( JAZZ), down 2.3%, Biomarin Pharmaceutical ( BMRN), down 1.8% and Shire ( SHPG), down 1.4%. Top gainers within the industry include Arrowhead Research Corporation ( ARWR), up 23.8%, Teva Pharmaceutical Industries ( TEVA), up 1.0% and Novartis ( NVS), up 0.8%.

TheStreet would like to highlight 3 stocks pushing the industry lower today:

3. Eli Lilly and Company ( LLY) is one of the companies pushing the Drugs industry lower today. As of noon trading, Eli Lilly and Company is down $0.58 (-1.0%) to $59.26 on light volume. Thus far, 1.1 million shares of Eli Lilly and Company exchanged hands as compared to its average daily volume of 5.6 million shares. The stock has ranged in price between $59.22-$59.97 after having opened the day at $59.94 as compared to the previous trading day's close of $59.85.

Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. It operates in two segments, Human Pharmaceutical Products and Animal Health Products. Eli Lilly and Company has a market cap of $66.1 billion and is part of the health care sector. Shares are up 15.8% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Eli Lilly and Company a buy, 4 analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Eli Lilly and Company 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, reasonable valuation levels, good cash flow from operations, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Eli Lilly and Company 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, Actavis ( ACT) is down $1.97 (-0.9%) to $224.15 on light volume. Thus far, 654,661 shares of Actavis exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $224.00-$227.39 after having opened the day at $227.39 as compared to the previous trading day's close of $226.12.

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 $38.1 billion and is part of the health care sector. Shares are up 30.2% year-to-date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Actavis a buy, no analysts rate it a sell, and 1 rates 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, disappointing return on equity and generally higher debt management risk. Get the full Actavis 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, Merck ( MRK) is down $0.34 (-0.6%) to $56.72 on light volume. Thus far, 3.7 million shares of Merck exchanged hands as compared to its average daily volume of 12.6 million shares. The stock has ranged in price between $56.52-$57.44 after having opened the day at $57.40 as compared to the previous trading day's close of $57.06.

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 $165.9 billion and is part of the health care sector. Shares are up 14.0% year-to-date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Merck a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Merck as a buy. Among the primary strengths of the company is its 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 Merck 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 3 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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