BMY, MRK And ACT, 3 Drugs Stocks Pushing The Industry Lower

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All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 110 points (-0.7%) at 16,401 as of Tuesday, May 20, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 820 issues advancing vs. 2,151 declining with 156 unchanged.

The Drugs industry currently sits down 1.1% versus the S&P 500, which is down 0.6%. On the negative front, top decliners within the industry include Vertex Pharmaceuticals ( VRTX), down 1.9%, Mylan ( MYL), down 1.6%, Alexion Pharmaceuticals ( ALXN), down 1.5%, Illumina ( ILMN), down 1.5% and AbbVie ( ABBV), down 1.1%. A company within the industry that increased today was AstraZeneca ( AZN), up 2.3%.

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

3. Bristol-Myers Squibb Company ( BMY) is one of the companies pushing the Drugs industry lower today. As of noon trading, Bristol-Myers Squibb Company is down $0.49 (-1.0%) to $48.85 on light volume. Thus far, 2.8 million shares of Bristol-Myers Squibb Company exchanged hands as compared to its average daily volume of 8.7 million shares. The stock has ranged in price between $48.81-$49.33 after having opened the day at $49.13 as compared to the previous trading day's close of $49.34.

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. Bristol-Myers Squibb Company has a market cap of $80.8 billion and is part of the health care sector. Shares are down 7.2% year-to-date as of the close of trading on Monday. Currently there are 10 analysts that rate Bristol-Myers Squibb Company a buy, 2 analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Bristol-Myers Squibb Company as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and increase in stock price during the past year. 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 Bristol-Myers Squibb Company Ratings Report now.

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2. As of noon trading, Merck ( MRK) is down $0.45 (-0.8%) to $55.90 on light volume. Thus far, 2.8 million shares of Merck exchanged hands as compared to its average daily volume of 11.1 million shares. The stock has ranged in price between $55.83-$56.26 after having opened the day at $56.22 as compared to the previous trading day's close of $56.35.

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 $163.3 billion and is part of the health care sector. Shares are up 12.6% year-to-date as of the close of trading on Monday. 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, expanding profit margins, solid stock price performance, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Merck Ratings Report now.

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1. As of noon trading, Actavis ( ACT) is down $1.93 (-0.9%) to $206.63 on light volume. Thus far, 945,668 shares of Actavis exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $205.57-$208.68 after having opened the day at $207.73 as compared to the previous trading day's close of $208.56.

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 $36.2 billion and is part of the health care sector. Shares are up 24.1% year-to-date as of the close of trading on Monday. Currently there are 14 analysts that rate Actavis a buy, no analysts rate it a sell, and none rate 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 increase in net income. However, as a counter to these strengths, we also find weaknesses including 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.

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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