Drug industry

Operational basics and earnings for the pharmaceutical industry remain good for 1999 and this scenario is expected to remain in place for the near-term future. However, the stocks in this industry have declined in their timeliness rating, due in part to sector rotation into cyclical issues, despite the 19.9% increase in the Dow Jones Industrial Average since the beginning of 1999. Investors need to seek the highest quality stocks during periods of price weakness in this industry.