GlaxoSmithKline PLC (GSK): 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.

GlaxoSmithKline ( GSK) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 0.9%. By the end of trading, GlaxoSmithKline rose 58 cents (1.3%) to $44.26 on average volume. Throughout the day, 2.2 million shares of GlaxoSmithKline exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in a price between $44.14-$44.41 after having opened the day at $44.39 as compared to the previous trading day's close of $43.68. Other companies within the Health Care sector that increased today were: MEI Pharma ( MEIP), up 79.5%, Novogen ( NVGN), up 53.6%, BioMarin Pharmaceuticals ( BMRN), up 31.2%, and InterMune ( ITMN), up 14.4%.
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GlaxoSmithKline plc, together with its subsidiaries, engages in the discovery, development, manufacture, and marketing of pharmaceutical products, over the counter (OTC) medicines, and health-related consumer products worldwide. GlaxoSmithKline has a market cap of $113.26 billion and is part of the drugs industry. The company has a P/E ratio of 13.5, below the S&P 500 P/E ratio of 17.7. Shares are down 1.7% year to date as of the close of trading on Friday. Currently there are two analysts that rate GlaxoSmithKline a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates GlaxoSmithKline as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Pharmacyclics Incorporated ( PCYC), down 10.5%, China Pharma ( CPHI), down 9.3%, Endo Health Solutions ( ENDP), down 8.6%, and Threshold Pharmaceuticals ( THLD), down 8.5%, were all laggards within the health care sector with Valeant Pharmaceuticals International ( VRX) 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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