Pharmacyclics Incorporated (PCYC): 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.

Pharmacyclics Incorporated ( PCYC) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 1.2%. By the end of trading, Pharmacyclics Incorporated fell 82 cents (-1.3%) to $62.31 on light volume. Throughout the day, 773,763 shares of Pharmacyclics Incorporated exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $61.71-$63.41 after having opened the day at $63.14 as compared to the previous trading day's close of $63.13. Other companies within the Health Care sector that declined today were: Kips Bay Medical ( KIPS), down 13.3%, RBS Oil Trendpilot Exchange Traded Notes ( TWTI), down 9.9%, Columbia Laboratories ( CBRX), down 8.9%, and IsoRay ( ISR), down 7.2%.
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Pharmacyclics, Inc. operates as a clinical-stage biopharmaceutical company focusing on discovering, developing, and commercializing small-molecule drugs for the treatment of cancer and immune mediated diseases. Pharmacyclics Incorporated has a market cap of $4.34 billion and is part of the drugs industry. The company has a P/E ratio of 367.4, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 326% year to date as of the close of trading on Monday. Currently there are six analysts that rate Pharmacyclics Incorporated a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Pharmacyclics Incorporated 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 unimpressive growth in net income, premium valuation and weak operating cash flow.

On the positive front, OxiGene ( OXGN), up 30.2%, Catalyst Pharmaceutical Partners ( CPRX), up 28.4%, Cormedix ( CRMD), up 26.3%, and Spherix ( SPEX), up 25.5%, were all gainers within the health care sector with Watson Pharmaceuticals ( WPI) 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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