Biogen Idec Inc (BIIB): 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.

Biogen Idec ( BIIB) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 0.3%. By the end of trading, Biogen Idec rose $2.37 (1.7%) to $144.43 on average volume. Throughout the day, 1.4 million shares of Biogen Idec exchanged hands as compared to its average daily volume of 944,100 shares. The stock ranged in a price between $144.14-$146.45 after having opened the day at $145 as compared to the previous trading day's close of $142.06. Other companies within the Health Care sector that increased today were: Chelsea Therapeutics International ( CHTP), up 28%, Nymox Pharmaceutical Corporation ( NYMX), up 15.3%, Cempra ( CEMP), up 10.8%, and MEI Pharma ( MEIP), up 10.8%.
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Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Biogen Idec has a market cap of $33.58 billion and is part of the drugs industry. The company has a P/E ratio of 25.7, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 29.1% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Biogen Idec a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Biogen Idec 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, notable return on equity, reasonable valuation levels and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Cormedix ( CRMD), down 15.7%, Spherix ( SPEX), down 14.1%, XenoPort ( XNPT), down 11.9%, and Thermogenesis Corporation ( KOOL), down 11.1%, were all laggards within the health care sector with Sarepta Therapeutics ( SRPT) 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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