Celgene Corporation (CELG): 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.

Celgene Corporation ( CELG) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 0.5%. By the end of trading, Celgene Corporation rose $1.94 (2.6%) to $77.12 on average volume. Throughout the day, three million shares of Celgene Corporation exchanged hands as compared to its average daily volume of 2.5 million shares. The stock ranged in a price between $74.49-$77.16 after having opened the day at $75.18 as compared to the previous trading day's close of $75.18. Other companies within the Health Care sector that increased today were: Biocryst Pharmaceuticals ( BCRX), up 14.4%, Tianyin Pharmaceutical ( TPI), up 12.3%, Astex Pharmaceuticals ( ASTX), up 11.2%, and Sunesis Pharmaceuticals ( SNSS), up 9.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes various therapies to treat cancer and immune-inflammatory related diseases primarily in the United States and Europe. Celgene Corporation has a market cap of $31.44 billion and is part of the drugs industry. The company has a P/E ratio of 20.6, above the S&P 500 P/E ratio of 17.7. Shares are up 11.2% year to date as of the close of trading on Monday. Currently there are 19 analysts that rate Celgene Corporation a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Celgene Corporation 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 expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Senesco Technologies ( SNT), down 18.7%, Hooper Holmes ( HH), down 17%, Tranzyme ( TZYM), down 12.2%, and CombiMatrix Corporation ( CBMX), down 12%, were all laggards within the health care sector with Hologic ( HOLX) 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).

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.
null

If you liked this article you might like

How I've Prepared for Hurricane Irma -- and a Market Pullback

How I'm Prepared for Irma -- and a Pullback

Juno, bluebird In Focus as Targets Following Gilead-Kite Aquisition

Apple Is the Tom Brady of Stocks: Cramer's 'Mad Money' Recap (Thursday 8/31/17)

Cramer: Fantasy Shmantasy -- Let's Get Real With These Stock Picks