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 down 1.1%. By the end of trading, Pharmacyclics Incorporated fell $1.25 (-2%) to $61.15 on light volume. Throughout the day, 515,382 shares of Pharmacyclics Incorporated exchanged hands as compared to its average daily volume of 951,200 shares. The stock ranged in price between $60.98-$62.93 after having opened the day at $62.50 as compared to the previous trading day's close of $62.40. Other companies within the Health Care sector that declined today were: USMD Holdings ( USMD), down 39.1%, NuPathe ( PATH), down 25.6%, AEterna Zentaris ( AEZS), down 22.5%, and Graymark Healthcare ( GRMH), down 20%.
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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 $4.26 billion and is part of the drugs industry. The company has a P/E ratio of 360.3, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 313.3% year to date as of the close of trading on Tuesday. 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.

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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