Ariad Pharmaceuticals (ARIA): Today's Featured Health Care Winner

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.

Ariad Pharmaceuticals ( ARIA) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 0.3%. By the end of trading, Ariad Pharmaceuticals rose 65 cents (2.9%) to $23.01 on average volume. Throughout the day, 3.3 million shares of Ariad Pharmaceuticals exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in a price between $22.50-$23.05 after having opened the day at $22.59 as compared to the previous trading day's close of $22.36. Other companies within the Health Care sector that increased today were: Cell Therapeutics ( CTIC), up 38.5%, Sunesis Pharmaceuticals ( SNSS), up 32.2%, AspenBio Pharma ( APPY), up 28%, and Hansen Medical ( HNSN), up 14.9%.

ARIAD Pharmaceuticals, Inc., an oncology company, focuses on the discovery, development, and commercialization of medicines for cancer patients. Ariad Pharmaceuticals has a market cap of $3.66 billion and is part of the drugs industry. Shares are up 79.6% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate Ariad Pharmaceuticals a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Ariad Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and feeble growth in the company's earnings per share.

On the negative front, Navidea Biopharmaceuticals ( NAVB), down 24.8%, Complete Genomics ( GNOM), down 11.5%, Cytori Therapeutics ( CYTX), down 8.3%, and Peregrine Pharmaceuticals ( PPHM), down 8.3%, were all laggards within the health care sector with Vertex Pharmaceuticals ( VRTX) being today's health care sector laggard.

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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