Biogen Idec Inc (BIIB): 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.

Biogen Idec ( BIIB) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 1.2%. By the end of trading, Biogen Idec rose $2.51 (1.7%) to $149.87 on light volume. Throughout the day, 355,098 shares of Biogen Idec exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $147.32-$149.87 after having opened the day at $148.44 as compared to the previous trading day's close of $147.36. Other companies within the Health Care sector that increased today were: BG Medicine ( BGMD), up 23%, MAP Pharmaceuticals ( MAPP), up 20.3%, Misonix ( MSON), up 13.6%, and Star Scientific ( STSI), up 13.6%.
  • 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.

Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Biogen Idec has a market cap of $34.86 billion and is part of the drugs industry. The company has a P/E ratio of 25.6, above the S&P 500 P/E ratio of 17.7. Shares are up 33.9% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Biogen Idec a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Biogen Idec 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 solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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

More from Markets

Here's Why Alphabet, Facebook and Amazon Earnings May Overshadow Tariff Worries

Here's Why Alphabet, Facebook and Amazon Earnings May Overshadow Tariff Worries

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

Don't Panic! The Risk of a Recession This Year Is Low

Don't Panic! The Risk of a Recession This Year Is Low

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

State Street Gets Pummeled on Software Deal; Pizza Wars Are Raging -- ICYMI

State Street Gets Pummeled on Software Deal; Pizza Wars Are Raging -- ICYMI