GSK, ABT And SHPG, 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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 68 points (-0.4%) at 17,105 as of Tuesday, Sept. 23, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,162 issues advancing vs. 1,797 declining with 186 unchanged.

The Drugs industry currently sits up 0.3% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the industry include Grifols ( GRFS), down 3.5%, Sanofi ( SNY), down 1.9%, AbbVie ( ABBV), down 1.8% and Novo Nordisk A/S ( NVO), down 1.2%. A company within the industry that increased today was Herbalife ( HLF), up 7.7%.

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

3. GlaxoSmithKline ( GSK) is one of the companies pushing the Drugs industry lower today. As of noon trading, GlaxoSmithKline is down $0.61 (-1.3%) to $46.71 on heavy volume. Thus far, 4.2 million shares of GlaxoSmithKline exchanged hands as compared to its average daily volume of 3.7 million shares. The stock has ranged in price between $46.65-$46.86 after having opened the day at $46.68 as compared to the previous trading day's close of $47.32.

GlaxoSmithKline plc creates, discovers, develops, manufactures, and markets pharmaceutical products, such as vaccines, over-the-counter medicines, and health-related consumer products worldwide. GlaxoSmithKline has a market cap of $113.8 billion and is part of the health care sector. Shares are down 11.4% year-to-date as of the close of trading on Monday. Currently there is 1 analyst that rates GlaxoSmithKline a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates GlaxoSmithKline as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full GlaxoSmithKline Ratings Report now.

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2. As of noon trading, Abbott Laboratories ( ABT) is down $0.71 (-1.6%) to $42.69 on average volume. Thus far, 2.6 million shares of Abbott Laboratories exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $42.68-$43.16 after having opened the day at $42.71 as compared to the previous trading day's close of $43.40.

Abbott Laboratories manufactures and sells health care products worldwide. Abbott Laboratories has a market cap of $65.5 billion and is part of the health care sector. Shares are up 13.2% year-to-date as of the close of trading on Monday. Currently there are 10 analysts that rate Abbott Laboratories a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Abbott Laboratories 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, good cash flow from operations, 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. Get the full Abbott Laboratories Ratings Report now.

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1. As of noon trading, Shire ( SHPG) is down $4.62 (-1.8%) to $251.68 on heavy volume. Thus far, 1.9 million shares of Shire exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $247.98-$253.06 after having opened the day at $248.70 as compared to the previous trading day's close of $256.30.

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 $50.0 billion and is part of the health care sector. Shares are up 82.7% year-to-date as of the close of trading on Monday. Currently there are 3 analysts that rate Shire a buy, no analysts rate it a sell, and 7 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, solid stock price performance, impressive record of earnings per share growth, compelling growth 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 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.

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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