Valeant Pharmaceuticals International Inc (VRX): 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.

Valeant Pharmaceuticals International ( VRX) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 0.4%. By the end of trading, Valeant Pharmaceuticals International rose 89 cents (1.6%) to $56.16 on average volume. Throughout the day, 1.7 million shares of Valeant Pharmaceuticals International exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in a price between $55.76-$57.03 after having opened the day at $56.21 as compared to the previous trading day's close of $55.27. Other companies within the Health Care sector that increased today were: Fonar Corporation ( FONR), up 30.4%, Escalon Medical Corporation ( ESMC), up 24.1%, Synta Pharmaceuticals ( SNTA), up 23.5%, and Prima Biomed Ltd. ADR ( PBMD), up 13%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Valeant Pharmaceuticals International, Inc., a specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products in the areas of neurology, dermatology, and branded generics. Valeant Pharmaceuticals International has a market cap of $16.89 billion and is part of the drugs industry. The company has a P/E ratio of 292.6, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 19.1% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Valeant Pharmaceuticals International a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Valeant Pharmaceuticals International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and generally higher debt management risk.

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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.

null

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%