3 Drugs Stocks Dragging The Industry Down

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 68 points (0.4%) at 17,048 as of Thursday, Aug. 21, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,747 issues advancing vs. 1,215 declining with 171 unchanged.

The Drugs industry currently sits down 0.9% versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the industry include Mylan ( MYL), down 1.5%, Merck ( MRK), down 0.7% and Biogen Idec ( BIIB), down 0.6%.

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

3. Novo Nordisk A/S ( NVO) is one of the companies pushing the Drugs industry lower today. As of noon trading, Novo Nordisk A/S is down $0.24 (-0.5%) to $45.44 on heavy volume. Thus far, 1.0 million shares of Novo Nordisk A/S exchanged hands as compared to its average daily volume of 882,100 shares. The stock has ranged in price between $45.01-$45.78 after having opened the day at $45.14 as compared to the previous trading day's close of $45.69.

Novo Nordisk A/S engages in the discovery, development, manufacture, and marketing of pharmaceutical products primarily in Denmark. It operates in two segments, Diabetes Care and Biopharmaceuticals. Novo Nordisk A/S has a market cap of $124.4 billion and is part of the health care sector. Shares are up 23.6% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Novo Nordisk A/S a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Novo Nordisk A/S as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Novo Nordisk A/S 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, Incyte ( INCY) is down $1.46 (-2.8%) to $50.20 on light volume. Thus far, 329,551 shares of Incyte exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $49.85-$52.14 after having opened the day at $51.95 as compared to the previous trading day's close of $51.66.

Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary small molecule drugs primarily for oncology and inflammation. Incyte has a market cap of $8.8 billion and is part of the health care sector. Shares are up 2.0% year-to-date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Incyte a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Incyte as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and feeble growth in its earnings per share. Get the full Incyte 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, Vertex Pharmaceuticals ( VRTX) is down $1.85 (-2.0%) to $89.45 on light volume. Thus far, 386,269 shares of Vertex Pharmaceuticals exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $88.48-$91.88 after having opened the day at $91.32 as compared to the previous trading day's close of $91.30.

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 $21.9 billion and is part of the health care sector. Shares are up 22.9% year-to-date as of the close of trading on Wednesday. Currently there are 9 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 hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and disappointing return on equity. 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.

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).
null

If you liked this article you might like

Why Investors Shouldn't Worry About Trump's Tough Talk on Drug Prices

Why Investors Shouldn't Worry About Trump's Tough Talk on Drug Prices

Eli Lilly Beats Estimates, but Shares Head Lower Amid Diabetes Concerns

Eli Lilly Beats Estimates, but Shares Head Lower Amid Diabetes Concerns

Sanofi Announces Second Billion-Dollar Deal In a Week, and It May Not Be Done

Sanofi Announces Second Billion-Dollar Deal In a Week, and It May Not Be Done

5G, Sanofi, Ablynx, Coincheck and Bruno Mars - 5 Things You Must Know

5G, Sanofi, Ablynx, Coincheck and Bruno Mars - 5 Things You Must Know

Novo Nordisk Shares Leap Higher After Solid Earnings and Full-Year Sales Upgrade

Novo Nordisk Shares Leap Higher After Solid Earnings and Full-Year Sales Upgrade