Hologic Inc (HOLX): 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.

Hologic ( HOLX) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Hologic fell 28 cents (-1.5%) to $19.15 on heavy volume. Throughout the day, 3.5 million shares of Hologic exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $19.11-$19.66 after having opened the day at $19.45 as compared to the previous trading day's close of $19.44. Other companies within the Health Care sector that declined today were: Senesco Technologies ( SNT), down 18.7%, Hooper Holmes ( HH), down 17%, Tranzyme ( TZYM), down 12.2%, and CombiMatrix Corporation ( CBMX), down 12%.
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Hologic Inc. develops, manufactures, and supplies diagnostic, medical imaging systems, and surgical products for the healthcare needs of women. The company operates in four segments: Breast Health, Diagnostics, GYN Surgical, and Skeletal Health. Hologic has a market cap of $5.16 billion and is part of the health services industry. The company has a P/E ratio of 14.1, below the S&P 500 P/E ratio of 17.7. Shares are up 11.4% year to date as of the close of trading on Monday. Currently there are 16 analysts that rate Hologic a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Hologic as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.

On the positive front, 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%, were all gainers within the health care sector with Celgene Corporation ( CELG) 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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