St Jude Medical Inc. (STJ): 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.

St Jude Medical ( STJ) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole was unchanged today. By the end of trading, St Jude Medical rose 56 cents (1.5%) to $38.85 on average volume. Throughout the day, 5.1 million shares of St Jude Medical exchanged hands as compared to its average daily volume of 4.5 million shares. The stock ranged in a price between $38.24-$39.19 after having opened the day at $38.24 as compared to the previous trading day's close of $38.29. Other companies within the Health Care sector that increased today were: Sangamo BioSciences ( SGMO), up 17.5%, Halozyme Therapeutics ( HALO), up 15.7%, Biolase ( BIOL), up 15.5%, and ACADIA Pharmaceuticals ( ACAD), up 12%.
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St. Jude Medical, Inc. develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. It operates in four segments: Cardiac Rhythm Management, Cardiovascular, Atrial Fibrillation, and Neuromodulation. St Jude Medical has a market cap of $11.76 billion and is part of the health services industry. The company has a P/E ratio of 16, below the S&P 500 P/E ratio of 17.7. Shares are up 5.9% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate St Jude Medical a buy, no analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates St Jude Medical as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.

On the negative front, Telik ( TELK), down 24.5%, Oxygen Biotherapeutics ( OXBT), down 12%, Flamel Technologies ( FLML), down 11.8%, and ImmuCell Corporation ( ICCC), down 11.6%, were all laggards within the health care sector with Onyx Pharmaceuticals ( ONXX) 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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