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 down 3.5%. By the end of trading, Actavis fell $5.67 (-2.7%) to $201.31 on average volume. Throughout the day, 2,492,462 shares of Actavis exchanged hands as compared to its average daily volume of 2,604,000 shares. The stock ranged in price between $199.88-$210.74 after having opened the day at $208.00 as compared to the previous trading day's close of $206.98. Other companies within the Drugs industry that declined today were: Halozyme Therapeutics ( HALO), down 27.3%, Prothena Corporation ( PRTA), down 14.0%, OncoMed Pharmaceuticals ( OMED), down 13.4% and Enanta Pharmaceuticals ( ENTA), down 10.5%.

Actavis plc, an integrated specialty pharmaceutical company, is engaged in the development, manufacture, marketing, sale, and distribution of pharmaceutical products in the Americas, Europe, the Middle East, Africa, Australia, and the Asia Pacific. Actavis has a market cap of $36.4 billion and is part of the health care sector. Shares are up 23.2% year to date as of the close of trading on Thursday. 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.

On the positive front, Aoxing Pharmaceutical Company ( AXN), up 9.0%, Enzon Pharmaceuticals ( ENZN), up 6.6%, Exact Sciences Corporation ( EXAS), up 5.7% and Kindred Biosciences ( KIN), up 4.2%.

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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