Allergan Inc (AGN): Today's Featured Drugs Winner

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.

Allergan ( AGN) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day down 1.4%. By the end of trading, Allergan rose $2.00 (1.2%) to $165.65 on heavy volume. Throughout the day, 10,962,348 shares of Allergan exchanged hands as compared to its average daily volume of 3,031,500 shares. The stock ranged in a price between $160.59-$166.00 after having opened the day at $163.18 as compared to the previous trading day's close of $163.65. Other companies within the Drugs industry that increased today were: Recro Pharma ( REPH), up 24.4%, Aoxing Pharmaceutical ( AXN), up 14.3%, GW Pharmaceuticals ( GWPH), up 13.9% and XTL Biopharmaceuticals ( XTLB), up 12.9%.

Allergan, Inc. operates as a multi-specialty health care company primarily in the United States, Europe, Latin America, and the Asia Pacific. Allergan has a market cap of $42.5 billion and is part of the health care sector. Shares are up 47.3% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Allergan a buy, no analysts rate it a sell, and 7 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, XenoPort ( XNPT), down 10.0%, PTC Therapeutics ( PTCT), down 9.3%, Immunomedics ( IMMU), down 9.2% and Geron ( GERN), down 8.7% , were all laggards within the drugs industry with Actavis ( ACT) being today's drugs industry laggard.

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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