Drugs Stocks On The Rise With Help From 3 Stocks

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 67 points (0.4%) at 16,436 as of Friday, Aug. 8, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,992 issues advancing vs. 961 declining with 169 unchanged.

The Drugs industry currently sits up 0.6% versus the S&P 500, which is up 0.4%. Top gainers within the industry include Medivation ( MDVN), up 9.5%, Illumina ( ILMN), up 4.5%, Vertex Pharmaceuticals ( VRTX), up 1.9%, Valeant Pharmaceuticals International ( VRX), up 1.4% and Alexion Pharmaceuticals ( ALXN), up 1.4%. On the negative front, top decliners within the industry include Teva Pharmaceutical Industries ( TEVA), down 1.2%, Novo Nordisk A/S ( NVO), down 0.6% and Abbott Laboratories ( ABT), down 0.5%.

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

3. Celgene ( CELG) is one of the companies pushing the Drugs industry higher today. As of noon trading, Celgene is up $0.61 (0.7%) to $85.83 on light volume. Thus far, 1.1 million shares of Celgene exchanged hands as compared to its average daily volume of 4.8 million shares. The stock has ranged in price between $85.15-$86.10 after having opened the day at $85.21 as compared to the previous trading day's close of $85.22.

Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes therapies to treat cancer and immune-inflammatory related diseases in the United States and internationally. Celgene has a market cap of $68.9 billion and is part of the health care sector. Shares are up 0.9% year-to-date as of the close of trading on Thursday. Currently there are 17 analysts who rate Celgene a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Celgene as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, robust revenue growth, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Celgene Ratings Report now.

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2. As of noon trading, Allergan ( AGN) is up $4.08 (2.7%) to $156.00 on average volume. Thus far, 1.6 million shares of Allergan exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $152.49-$156.38 after having opened the day at $153.12 as compared to the previous trading day's close of $151.92.

Allergan, Inc. operates as a multi-specialty health care company primarily in the United States, Europe, Latin America, and the Asia Pacific. Allergan has a market cap of $46.7 billion and is part of the health care sector. Shares are up 36.8% year-to-date as of the close of trading on Thursday. Currently there are 6 analysts who rate Allergan a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Allergan as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, compelling growth in net income and solid stock price performance. 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 Allergan Ratings Report now.

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1. As of noon trading, Merck ( MRK) is up $0.42 (0.8%) to $56.06 on light volume. Thus far, 2.7 million shares of Merck exchanged hands as compared to its average daily volume of 8.3 million shares. The stock has ranged in price between $55.58-$56.20 after having opened the day at $55.87 as compared to the previous trading day's close of $55.64.

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 $163.4 billion and is part of the health care sector. Shares are up 11.2% year-to-date as of the close of trading on Thursday. Currently there are 6 analysts who 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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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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