Onyx Pharmaceuticals Inc. (ONXX): 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.

Onyx Pharmaceuticals ( ONXX) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 0.1%. By the end of trading, Onyx Pharmaceuticals fell $1.36 (-1.6%) to $81.78 on average volume. Throughout the day, 1.2 million shares of Onyx Pharmaceuticals exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $81.27-$85.50 after having opened the day at $83.01 as compared to the previous trading day's close of $83.14. Other companies within the Health Care sector that declined today were: United Therapeutics Corporation ( UTHR), down 15.6%, ARCA biopharma ( ABIO), down 13.3%, MEI Pharma ( MEIP), down 11.9%, and Arrhythmia Research Technology ( HRT), down 10%.
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Onyx Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of therapies that target the molecular mechanisms that cause cancer in the United States and internationally. Onyx Pharmaceuticals has a market cap of $5.47 billion and is part of the drugs industry. The company has a P/E ratio of 289.7, above the average drugs industry P/E ratio of 280 and above the S&P 500 P/E ratio of 17.7. Shares are up 91.1% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Onyx Pharmaceuticals a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Onyx Pharmaceuticals as a hold. 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 and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share.

On the positive front, Kips Bay Medical ( KIPS), up 26.3%, Columbia Laboratories ( CBRX), up 17.5%, Amyris ( AMRS), up 16.4%, and Oxygen Biotherapeutics ( OXBT), up 16.3%, were all gainers within the health care sector with HCA Holdings ( HCA) 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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