3 Stocks Pushing The Drugs Industry Lower

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The Drugs industry as a whole closed the day down 0.3% versus the S&P 500, which was down 0.9%. Laggards within the Drugs industry included XTL Biopharmaceuticals ( XTLB), down 3.7%, VBI Vaccines ( VBIV), down 4.2%, MediciNova ( MNOV), down 2.0%, Natural Alternatives International ( NAII), down 6.6% and Cyanotech ( CYAN), down 2.1%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Endo International ( ENDP) is one of the companies that pushed the Drugs industry lower today. Endo International was down $2.58 (3.9%) to $63.87 on average volume. Throughout the day, 1,802,075 shares of Endo International exchanged hands as compared to its average daily volume of 1,896,700 shares. The stock ranged in price between $63.57-$66.36 after having opened the day at $65.97 as compared to the previous trading day's close of $66.45.

Endo International plc, a specialty healthcare company, develops, manufactures, markets, and distributes branded pharmaceutical and generic products, and medical devices worldwide. Endo International has a market cap of $10.3 billion and is part of the health care sector. Shares are up 0.2% year-to-date as of the close of trading on Monday. Currently there are 9 analysts who rate Endo International a buy, 1 analyst rates it a sell, and 6 rate it a hold.

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TheStreet Ratings rates Endo International as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that net income has been generally deteriorating over time.

Highlights from TheStreet Ratings analysis on ENDP go as follows:

  • Compared to its closing price of one year ago, ENDP's share price has jumped by 74.41%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • Net operating cash flow has increased to $211.73 million or 20.45% when compared to the same quarter last year. In addition, ENDO INTERNATIONAL PLC has also vastly surpassed the industry average cash flow growth rate of -66.20%.
  • ENDO INTERNATIONAL PLC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ENDO INTERNATIONAL PLC continued to lose money by earning -$5.00 versus -$6.57 in the prior year. This year, the market expects an improvement in earnings ($3.74 versus -$5.00).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, ENDO INTERNATIONAL PLC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Pharmaceuticals industry. The net income has significantly decreased by 39.5% when compared to the same quarter one year ago, falling from $35.00 million to $21.16 million.

You can view the full analysis from the report here: Endo International Ratings Report

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