Allergan Inc. (AGN): 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.

Allergan ( AGN) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 0.5%. By the end of trading, Allergan rose $1.17 (1.2%) to $95.30 on average volume. Throughout the day, 1.5 million shares of Allergan exchanged hands as compared to its average daily volume of two million shares. The stock ranged in a price between $94.17-$95.44 after having opened the day at $94.51 as compared to the previous trading day's close of $94.13. Other companies within the Health Care sector that increased today were: Graymark Healthcare ( GRMH), up 25%, Peregrine Pharmaceuticals ( PPHM), up 24.3%, Prana Biotechnology ( PRAN), up 18.9%, and InterMune ( ITMN), up 16.3%.
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Allergan, Inc. operates as a multi-specialty healthcare company primarily in the United States, Europe, Latin America, and the Asia Pacific. Allergan has a market cap of $28.15 billion and is part of the drugs industry. The company has a P/E ratio of 27.4, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 7.3% year to date as of the close of trading on Tuesday. Currently there are 15 analysts that rate Allergan a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Allergan as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, USMD Holdings ( USMD), down 13.9%, CytRx Corporation ( CYTR), down 11.7%, MEI Pharma ( MEIP), down 9.5%, and Sunshine Heart ( SSH), down 8.9%, were all laggards within the health care sector with St Jude Medical ( STJ) being today's health care sector laggard.

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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