3 Stocks Pushing 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 34 points (0.2%) at 16,464 as of Wednesday, Aug. 6, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,014 issues advancing vs. 970 declining with 140 unchanged.

The Drugs industry currently sits up 0.3% versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the industry include Perrigo ( PRGO), down 4.0%, Actavis ( ACT), down 3.7%, AstraZeneca ( AZN), down 2.0% and GlaxoSmithKline ( GSK), down 0.6%. Top gainers within the industry include Jazz Pharmaceuticals ( JAZZ), up 9.1%, Alexion Pharmaceuticals ( ALXN), up 1.4% and Gilead ( GILD), up 0.6%.

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

3. Teva Pharmaceutical Industries ( TEVA) is one of the companies pushing the Drugs industry lower today. As of noon trading, Teva Pharmaceutical Industries is down $0.63 (-1.2%) to $52.15 on light volume. Thus far, 1.3 million shares of Teva Pharmaceutical Industries exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $51.80-$52.47 after having opened the day at $52.40 as compared to the previous trading day's close of $52.78.

Teva Pharmaceutical Industries Limited, together with its subsidiaries, develops, manufactures, sells, and distributes pharmaceutical products worldwide. The company offers generic pharmaceutical products; and basic chemicals, as well as specialized product families. Teva Pharmaceutical Industries has a market cap of $45.1 billion and is part of the health care sector. Shares are up 31.7% year-to-date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Teva Pharmaceutical Industries a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Teva Pharmaceutical Industries as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Teva Pharmaceutical Industries 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, Shire ( SHPG) is down $9.38 (-3.8%) to $236.36 on heavy volume. Thus far, 2.3 million shares of Shire exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $230.70-$237.37 after having opened the day at $231.04 as compared to the previous trading day's close of $245.74.

Shire plc, a biopharmaceutical company, together with its subsidiaries, researches, develops, licenses, manufactures, markets, distributes, and sells pharmaceutical products. Shire has a market cap of $49.0 billion and is part of the health care sector. Shares are up 76.6% year-to-date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Shire a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Shire as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Shire 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, AbbVie ( ABBV) is down $0.41 (-0.8%) to $52.38 on heavy volume. Thus far, 10.3 million shares of AbbVie exchanged hands as compared to its average daily volume of 9.0 million shares. The stock has ranged in price between $51.37-$52.66 after having opened the day at $51.48 as compared to the previous trading day's close of $52.79.

AbbVie Inc., a research-based biopharmaceutical company, is engaged in the discovery, development, manufacture, and sale of pharmaceutical products worldwide. AbbVie has a market cap of $84.7 billion and is part of the health care sector. Shares are up 0.9% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts that rate AbbVie a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates AbbVie as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Get the full AbbVie 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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