Omnicare Inc (OCR): Today's Featured Wholesale 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.

Omnicare ( OCR) pushed the Wholesale industry lower today making it today's featured Wholesale laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Omnicare fell $1 (-2.8%) to $34.57 on average volume. Throughout the day, 1.2 million shares of Omnicare exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in price between $34.51-$35.49 after having opened the day at $35.42 as compared to the previous trading day's close of $35.57. Other companies within the Wholesale industry that declined today were: Arrow Electronics ( ARW), down 4.3%, DXP ( DXPE), down 4.1%, Navarre Corporation ( NAVR), down 4%, and Avnet ( AVT), down 3%.
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Omnicare, Inc. operates as a healthcare services company that specializes in the management of pharmaceutical care in the United States and Canada. Omnicare has a market cap of $3.96 billion and is part of the services sector. The company has a P/E ratio of 26.9, below the average wholesale industry P/E ratio of 30.4 and above the S&P 500 P/E ratio of 17.7. Shares are up 3.3% year to date as of the close of trading on Monday. Currently there are five analysts that rate Omnicare a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Omnicare as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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