Edwards Life Sciences Corp. (EW): 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.

Edwards Life ( EW) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Edwards Life fell $1.93 (-2%) to $92.57 on average volume. Throughout the day, 1.1 million shares of Edwards Life exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in price between $92.20-$94.62 after having opened the day at $94.23 as compared to the previous trading day's close of $94.50. Other companies within the Health Care sector that declined today were: Medical Action Industries ( MDCI), down 14.6%, CombiMatrix Corporation ( CBMX), down 10.6%, Aoxing Pharmaceutical Company ( AXN), down 10%, and Venaxis ( APPY), down 9.6%.
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Edwards Lifesciences Corporation provides products and technologies to treat advanced cardiovascular diseases or critically ill patients worldwide. Edwards Life has a market cap of $10.69 billion and is part of the health services industry. The company has a P/E ratio of 40.6, above the S&P 500 P/E ratio of 17.7. Shares are up 2.8% year to date as of the close of trading on Monday. Currently there are nine analysts that rate Edwards Life a buy, two analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Edwards Life 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, growth in earnings per share, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Cell Therapeutics ( CTIC), up 25.4%, Pacific Biosciences of California ( PACB), up 17.8%, Theratechnologies ( THER), up 15.8%, and Threshold Pharmaceuticals ( THLD), up 14.3%, were all gainers within the health care sector with Arena Pharmaceuticals ( ARNA) 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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