TEVA, VRX And AGN, Pushing 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 81 points (0.5%) at 17,082 as of Monday, Aug. 25, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,780 issues advancing vs. 1,159 declining with 188 unchanged.

The Drugs industry currently sits up 1.2% versus the S&P 500, which is up 0.4%. Top gainers within the industry include InterMune ( ITMN), up 35.4%, Incyte ( INCY), up 5.7%, Illumina ( ILMN), up 2.4%, Gilead ( GILD), up 2.3% and Sanofi ( SNY), up 2.2%.

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 $0.68 (-1.3%) to $52.77 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 $52.67-$53.37 after having opened the day at $53.22 as compared to the previous trading day's close of $53.45.

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 $45.8 billion and is part of the health care sector. Shares are up 33.4% year-to-date as of the close of trading on Friday. Currently there are 10 analysts that rate Teva Pharmaceutical Industries a buy, no analysts rate it a sell, and 10 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, solid stock price performance, attractive valuation levels, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. 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, Valeant Pharmaceuticals International ( VRX) is down $1.00 (-0.8%) to $116.26 on light volume. Thus far, 869,662 shares of Valeant Pharmaceuticals International exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $115.00-$117.15 after having opened the day at $117.14 as compared to the previous trading day's close of $117.26.

Valeant Pharmaceuticals International, Inc. develops, manufactures, and markets pharmaceuticals, over-the-counter (OTC) products, and medical devices in the areas of eye health, dermatology, and neurology therapeutic classes worldwide. Valeant Pharmaceuticals International has a market cap of $38.2 billion and is part of the health care sector. Shares are down 0.1% year-to-date as of the close of trading on Friday. Currently there are 9 analysts that rate Valeant Pharmaceuticals International a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Valeant Pharmaceuticals International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and disappointing return on equity. Get the full Valeant Pharmaceuticals International 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, Allergan ( AGN) is down $1.12 (-0.7%) to $164.44 on light volume. Thus far, 742,098 shares of Allergan exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $164.15-$166.62 after having opened the day at $166.61 as compared to the previous trading day's close of $165.56.

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 $48.9 billion and is part of the health care sector. Shares are up 49.0% year-to-date as of the close of trading on Friday. Currently there are 7 analysts that rate Allergan a buy, 1 analyst rates it a sell, and 5 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, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Allergan 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

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers