Varian Medical Systems Inc. (VAR): 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.

Varian Medical Systems ( VAR) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day down 1%. By the end of trading, Varian Medical Systems rose $1.38 (2%) to $70.15 on heavy volume. Throughout the day, 2.5 million shares of Varian Medical Systems exchanged hands as compared to its average daily volume of 953,300 shares. The stock ranged in a price between $68.92-$70.53 after having opened the day at $69.04 as compared to the previous trading day's close of $68.77. Other companies within the Health Care sector that increased today were: Enzo Biochem ( ENZ), up 20.9%, Assisted Living Concepts ( ALC), up 20.4%, Aoxing Pharmaceutical Company ( AXN), up 17%, and Dendreon ( DNDN), up 16.1%.
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Varian Medical Systems, Inc. designs, manufactures, sells, and services equipment and software products for treating cancer with radiotherapy, stereotactic radiotherapy, stereotactic body radiotherapy, stereotactic radiosurgery, and brachytherapy worldwide. Varian Medical Systems has a market cap of $7.39 billion and is part of the health services industry. The company has a P/E ratio of 17.8, equal to the S&P 500 P/E ratio of 17.7. Shares are down 0.6% year to date as of the close of trading on Thursday. Currently there are eight analysts that rate Varian Medical Systems a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Varian Medical Systems 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, growth in earnings per share, increase in net income and expanding profit margins. 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, Novogen ( NVGN), down 24.1%, Globus Medical Inc Class A ( GMED), down 18.6%, Natures Sunshine Products ( NATR), down 15.5%, and Endocyte ( ECYT), down 14.1%, were all laggards within the health care sector with Celgene Corporation ( CELG) 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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