3 Stocks Pushing The Drugs Industry Lower

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The Drugs industry as a whole closed the day up 0.5% versus the S&P 500, which was up 0.1%. Laggards within the Drugs industry included Aurinia Pharmaceuticals ( AUPH), down 2.9%, Tianyin Pharmaceutical ( TPI), down 1.6%, Novogen ( NVGN), down 3.4%, Vermillion ( VRML), down 5.9% and Merus Labs International ( MSLI), down 2.6%.

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

PDL BioPharma ( PDLI) is one of the companies that pushed the Drugs industry lower today. PDL BioPharma was down $1.17 (12.1%) to $8.48 on heavy volume. Throughout the day, 10,885,696 shares of PDL BioPharma exchanged hands as compared to its average daily volume of 2,410,400 shares. The stock ranged in price between $8.42-$9.40 after having opened the day at $9.23 as compared to the previous trading day's close of $9.65.

PDL BioPharma, Inc. manages a portfolio of patents and royalty assets. The company is involved in the humanization of monoclonal antibodies and the discovery of a new generation of targeted treatments for cancer and immunologic diseases. It offers Queen et al. PDL BioPharma has a market cap of $1.5 billion and is part of the health care sector. Shares are up 14.3% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate PDL BioPharma a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates PDL BioPharma as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on PDLI go as follows:

  • Compared to other companies in the Biotechnology industry and the overall market, PDL BIOPHARMA INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for PDL BIOPHARMA INC is currently very high, coming in at 94.02%. Regardless of PDLI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PDLI's net profit margin of 79.60% significantly outperformed against the industry.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • PDL BIOPHARMA INC's earnings per share declined by 16.1% 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, PDL BIOPHARMA INC increased its bottom line by earning $1.73 versus $1.47 in the prior year. This year, the market expects an improvement in earnings ($2.07 versus $1.73).

You can view the full analysis from the report here: PDL BioPharma Ratings Report

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Today's Weak On High Volume Stock: PDL BioPharma (PDLI)