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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 13 points (0.1%) at 16,507 as of Monday, Aug. 4, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,334 issues advancing vs. 1,665 declining with 161 unchanged.

The Drugs industry currently is unchanged today versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Herbalife ( HLF), down 4.2%, Endo International ( ENDP), down 2.4%, Jazz Pharmaceuticals ( JAZZ), down 2.2%, Teva Pharmaceutical Industries ( TEVA), down 1.7% and Perrigo ( PRGO), down 1.5%. Top gainers within the industry include NPS Pharmaceuticals ( NPSP), up 5.5%, Biomarin Pharmaceutical ( BMRN), up 2.0%, Grifols ( GRFS), up 1.5%, Eli Lilly and ( LLY), up 0.8% and AbbVie ( ABBV), up 0.5%.

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

3. Actavis ( ACT) is one of the companies pushing the Drugs industry lower today. As of noon trading, Actavis is down $2.75 (-1.3%) to $214.14 on average volume. Thus far, 1.5 million shares of Actavis exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $213.23-$219.63 after having opened the day at $219.63 as compared to the previous trading day's close of $216.89.

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 $37.4 billion and is part of the health care sector. Shares are up 29.1% year-to-date as of the close of trading on Friday. Currently there are 16 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.

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2. As of noon trading, Merck ( MRK) is down $0.33 (-0.6%) to $56.47 on average volume. Thus far, 3.7 million shares of Merck exchanged hands as compared to its average daily volume of 8.7 million shares. The stock has ranged in price between $56.36-$57.21 after having opened the day at $56.95 as compared to the previous trading day's close of $56.80.

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 $165.8 billion and is part of the health care sector. Shares are up 13.5% year-to-date as of the close of trading on Friday. Currently there are 6 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. The company's strengths can be seen in multiple areas, such as its increase in net income, solid stock price performance, growth in earnings per share and expanding profit margins. 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 Merck Ratings Report now.

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1. As of noon trading, Pfizer ( PFE) is down $0.21 (-0.7%) to $28.65 on light volume. Thus far, 8.2 million shares of Pfizer exchanged hands as compared to its average daily volume of 26.1 million shares. The stock has ranged in price between $28.61-$28.96 after having opened the day at $28.95 as compared to the previous trading day's close of $28.86.

Pfizer Inc. discovers, develops, manufactures, and sells healthcare products worldwide. It offers medicines and vaccines, and various consumer healthcare products. Pfizer has a market cap of $183.1 billion and is part of the health care sector. Shares are down 5.8% year-to-date as of the close of trading on Friday. Currently there are 7 analysts that rate Pfizer a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates Pfizer as a buy. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Pfizer 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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