Shire PLC (SHPG): 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.

Shire ( SHPG) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day down 0.8%. By the end of trading, Shire rose $1.14 (1.3%) to $90.40 on average volume. Throughout the day, 508,328 shares of Shire exchanged hands as compared to its average daily volume of 433,500 shares. The stock ranged in a price between $90.25-$91.48 after having opened the day at $90.80 as compared to the previous trading day's close of $89.26. Other companies within the Health Care sector that increased today were: Novogen ( NVGN), up 20.3%, Cyclacel Pharmaceuticals ( CYCC), up 19.1%, ARCA biopharma ( ABIO), up 14.8%, and Hooper Holmes ( HH), up 10.3%.
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Shire plc, a specialty biopharmaceutical company, engages in the research and development, manufacture, sale, and distribution of pharmaceutical products. It operates in three segments: Specialty Pharmaceuticals, Human Genetic Therapies, and Regenerative Medicine. Shire has a market cap of $16.33 billion and is part of the drugs industry. The company has a P/E ratio of 17.4, below the S&P 500 P/E ratio of 17.7. Shares are down 14.1% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Shire a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Shire 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, reasonable valuation levels, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Chelsea Therapeutics International ( CHTP), down 36.4%, Anika Therapeutics ( ANIK), down 21.2%, CombiMatrix Corporation ( CBMX), down 13.6%, and Spherix ( SPEX), down 12.4%, were all laggards within the health care sector with Sarepta Therapeutics ( SRPT) 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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