GlaxoSmithKline PLC (GSK): Today's Featured Health Care Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

GlaxoSmithKline ( GSK) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 0.5%. By the end of trading, GlaxoSmithKline fell 62 cents (-1.3%) to $45.87 on average volume. Throughout the day, 2.1 million shares of GlaxoSmithKline exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $45.77-$46.09 after having opened the day at $45.85 as compared to the previous trading day's close of $46.49. Other companies within the Health Care sector that declined today were: Catalyst Pharmaceutical Partners ( CPRX), down 19.6%, Senesco Technologies ( SNT), down 12%, Ampio Pharmaceuticals ( AMPE), down 9.6%, and Retractable Technologies ( RVP), down 9.2%.

GlaxoSmithKline plc, together with its subsidiaries, engages in the discovery, development, manufacture, and marketing of pharmaceutical products, over the counter (OTC) medicines, and health-related consumer products worldwide. GlaxoSmithKline has a market cap of $117.24 billion and is part of the drugs industry. The company has a P/E ratio of 14, below the average drugs industry P/E ratio of 14.3 and below the S&P 500 P/E ratio of 17.7. Shares are up 1.9% year to date as of the close of trading on Monday. Currently there are three analysts that rate GlaxoSmithKline a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates GlaxoSmithKline as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Peregrine Pharmaceuticals ( PPHM), up 26.7%, Bacterin International Holdings ( BONE), up 17.8%, Rexahn Pharmaceuticals ( RNN), up 16%, and Opexa Therapeutics ( OPXA), up 15.9%, were all gainers within the health care sector with Align Technology ( ALGN) being today's featured health care sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health care sector could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health care sector could consider ProShares Ultra Short Health Care ( RXD).
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