Celgene Corporation (CELG): 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.

Celgene Corporation ( CELG) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 2.1%. By the end of trading, Celgene Corporation fell $3.32 (-4.2%) to $75.16 on average volume. Throughout the day, 3.6 million shares of Celgene Corporation exchanged hands as compared to its average daily volume of 2.7 million shares. The stock ranged in price between $75.10-$78.64 after having opened the day at $78.47 as compared to the previous trading day's close of $78.48. Other companies within the Health Care sector that declined today were: Cleveland BioLabs ( CBLI), down 26.2%, BG Medicine ( BGMD), down 16.3%, Cempra ( CEMP), down 11.7%, and IGI ( IG), down 10.6%.
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Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes various therapies to treat cancer and immune-inflammatory related diseases primarily in the United States and Europe. Celgene Corporation has a market cap of $34 billion and is part of the drugs industry. The company has a P/E ratio of 23, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 16.1% year to date as of the close of trading on Thursday. Currently there are 22 analysts that rate Celgene Corporation a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Celgene Corporation as a buy. 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, notable return on equity, reasonable valuation levels and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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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