Valeant Pharmaceuticals International Inc (VRX): 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.

Valeant Pharmaceuticals International ( VRX) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 0.9%. By the end of trading, Valeant Pharmaceuticals International fell $1.08 (-1.9%) to $55.29 on light volume. Throughout the day, 1.1 million shares of Valeant Pharmaceuticals International exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $55.12-$56.41 after having opened the day at $55.78 as compared to the previous trading day's close of $56.37. Other companies within the Health Care sector that declined today were: 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%.
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Valeant Pharmaceuticals International, Inc., a specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products in the areas of neurology, dermatology, and branded generics. Valeant Pharmaceuticals International has a market cap of $17.25 billion and is part of the drugs industry. The company has a P/E ratio of 298.7, above the S&P 500 P/E ratio of 17.7. Shares are up 21.6% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Valeant Pharmaceuticals International a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Valeant Pharmaceuticals International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and generally higher debt management risk.

On the positive front, MEI Pharma ( MEIP), up 79.5%, Novogen ( NVGN), up 53.6%, BioMarin Pharmaceuticals ( BMRN), up 31.2%, and InterMune ( ITMN), up 14.4%, were all gainers within the health care sector with GlaxoSmithKline ( GSK) 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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