AMGN, ACT And GILD, 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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 80 points (-0.5%) at 17,033 as of Monday, Sept. 29, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 959 issues advancing vs. 2,053 declining with 145 unchanged.

The Drugs industry currently sits up 0.4% versus the S&P 500, which is down 0.5%. On the negative front, top decliners within the industry include Seattle Genetics ( SGEN), down 6.1%, Perrigo ( PRGO), down 1.3%, AbbVie ( ABBV), down 1.2%, Regeneron Pharmaceuticals ( REGN), down 1.1% and Sanofi ( SNY), down 1.0%. A company within the industry that increased today was Bristol-Myers Squibb Company ( BMY), up 1.1%.

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

3. Amgen ( AMGN) is one of the companies pushing the Drugs industry lower today. As of noon trading, Amgen is down $1.27 (-0.9%) to $139.79 on light volume. Thus far, 811,255 shares of Amgen exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $139.50-$141.50 after having opened the day at $139.96 as compared to the previous trading day's close of $141.06.

Amgen Inc., a biotechnology company, discovers, develops, manufactures, and delivers human therapeutics in the areas of oncology, hematology, inflammation, bone health, nephrology, cardiovascular, and general medicine worldwide. Amgen has a market cap of $106.2 billion and is part of the health care sector. Shares are up 23.6% year-to-date as of the close of trading on Friday. Currently there are 7 analysts that rate Amgen a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Amgen 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, revenue growth, reasonable valuation levels and good cash flow from operations. 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 Amgen Ratings Report now.

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2. As of noon trading, Actavis ( ACT) is down $1.40 (-0.6%) to $243.24 on light volume. Thus far, 817,061 shares of Actavis exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $242.16-$246.83 after having opened the day at $242.27 as compared to the previous trading day's close of $244.64.

Actavis plc, an integrated specialty pharmaceutical company, is engaged in the development, manufacture, marketing, sale, and distribution of pharmaceutical products in the Americas, Europe, the Middle East, Africa, Australia, and the Asia Pacific. Actavis has a market cap of $64.6 billion and is part of the health care sector. Shares are up 45.6% year-to-date as of the close of trading on Friday. Currently there are 15 analysts that rate Actavis a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Actavis as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Get the full Actavis 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, Gilead ( GILD) is down $0.90 (-0.8%) to $107.48 on light volume. Thus far, 4.4 million shares of Gilead exchanged hands as compared to its average daily volume of 13.8 million shares. The stock has ranged in price between $106.45-$108.68 after having opened the day at $107.59 as compared to the previous trading day's close of $108.38.

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines for the treatment of life threatening diseases in North America, South America, Europe, and the Asia-Pacific. Gilead has a market cap of $165.2 billion and is part of the health care sector. Shares are up 44.3% year-to-date as of the close of trading on Friday. Currently there are 14 analysts that rate Gilead a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Gilead as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. 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 Gilead 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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