Warner Chilcott PLC (WCRX): 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.

Warner Chilcott ( WCRX) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Warner Chilcott fell 18 cents (-1.4%) to $12.98 on average volume. Throughout the day, 4.4 million shares of Warner Chilcott exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in price between $12.94-$13.22 after having opened the day at $13.17 as compared to the previous trading day's close of $13.16. Other companies within the Health Care sector that declined today were: Horizon Pharma ( HZNP), down 24%, Dehaier Medical Systems ( DHRM), down 14.4%, Aoxing Pharmaceutical Company ( AXN), down 10%, and Biosante Pharmaceuticals ( BPAX), down 9.2%.
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Warner Chilcott plc, a specialty pharmaceutical company, focuses on the development, manufacture, and promotion of branded pharmaceutical products in women's healthcare, gastroenterology, dermatology, and urology segments in North America and western Europe markets. Warner Chilcott has a market cap of $3.29 billion and is part of the drugs industry. The company has a P/E ratio of 13.3, above the average drugs industry P/E ratio of 11.5 and below the S&P 500 P/E ratio of 17.7. Shares are down 2.1% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Warner Chilcott a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates Warner Chilcott as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.

On the positive front, Cormedix ( CRMD), up 25%, AEterna Zentaris ( AEZS), up 23.1%, Cleveland BioLabs ( CBLI), up 17.8%, and Codexis ( CDXS), up 15.4%, were all gainers within the health care sector with Forest Laboratories ( FRX) 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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