3 Stocks Pulling 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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 12 points (-0.1%) at 16,797 as of Wednesday, June 18, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,344 issues advancing vs. 1,611 declining with 185 unchanged.

The Drugs industry currently sits up 0.1% versus the S&P 500, which is unchanged. On the negative front, top decliners within the industry include Gilead ( GILD), down 1.0%, and Novo Nordisk A/S ( NVO), down 0.6%. Top gainers within the industry include Shire ( SHPG), up 2.5%, Teva Pharmaceutical Industries ( TEVA), up 1.2%, Biogen Idec ( BIIB), up 1.2%, Allergan ( AGN), up 1.1% and Actavis ( ACT), up 0.9%.

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

3. Sanofi ( SNY) is one of the companies pushing the Drugs industry lower today. As of noon trading, Sanofi is down $0.35 (-0.7%) to $53.66 on light volume. Thus far, 304,723 shares of Sanofi exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $53.63-$54.04 after having opened the day at $54.02 as compared to the previous trading day's close of $54.01.

Sanofi researches, develops, manufactures, and markets healthcare products. The company operates in three segments: Pharmaceuticals, Human Vaccines, and Animal Health. Sanofi has a market cap of $142.6 billion and is part of the health care sector. Shares are up 0.7% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts that rate Sanofi a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Sanofi as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, growth in earnings per share, increase in net income 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 Sanofi 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, Vertex Pharmaceuticals ( VRTX) is down $0.90 (-1.4%) to $64.99 on average volume. Thus far, 1.0 million shares of Vertex Pharmaceuticals exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $64.36-$66.30 after having opened the day at $66.23 as compared to the previous trading day's close of $65.89.

Vertex Pharmaceuticals Incorporated is engaged in discovering, developing, manufacturing, and commercializing small molecule drugs for patients with serious diseases. Vertex Pharmaceuticals has a market cap of $15.9 billion and is part of the health care sector. Shares are down 11.3% year-to-date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Vertex Pharmaceuticals a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Vertex Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Get the full Vertex Pharmaceuticals 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, Illumina ( ILMN) is down $1.93 (-1.1%) to $167.92 on light volume. Thus far, 417,015 shares of Illumina exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $167.92-$171.98 after having opened the day at $169.36 as compared to the previous trading day's close of $169.85.

Illumina, Inc. develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation and function in North America, Europe, Latin America, the Asia-Pacific, the Middle East, and South Africa. Illumina has a market cap of $21.7 billion and is part of the health care sector. Shares are up 53.6% year-to-date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Illumina a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Illumina as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Illumina 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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