Onyx Pharmaceuticals Inc. (ONXX): 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.

Onyx Pharmaceuticals ( ONXX) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole was unchanged today. By the end of trading, Onyx Pharmaceuticals fell $1.45 (-1.7%) to $82.82 on light volume. Throughout the day, 544,537 shares of Onyx Pharmaceuticals exchanged hands as compared to its average daily volume of one million shares. The stock ranged in price between $82.39-$84.48 after having opened the day at $83.51 as compared to the previous trading day's close of $84.27. Other companies within the Health Care sector that declined today were: Telik ( TELK), down 24.5%, Oxygen Biotherapeutics ( OXBT), down 12%, Flamel Technologies ( FLML), down 11.8%, and ImmuCell Corporation ( ICCC), down 11.6%.
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Onyx Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of therapies that target the molecular mechanisms that cause cancer in the United States and internationally. Onyx Pharmaceuticals has a market cap of $5.79 billion and is part of the drugs industry. The company has a P/E ratio of 74.3, above the S&P 500 P/E ratio of 17.7. Shares are up 11.6% year to date as of the close of trading on Friday. Currently there are 13 analysts that rate Onyx Pharmaceuticals a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Onyx Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

On the positive front, Sangamo BioSciences ( SGMO), up 17.5%, Halozyme Therapeutics ( HALO), up 15.7%, Biolase ( BIOL), up 15.5%, and ACADIA Pharmaceuticals ( ACAD), up 12%, were all gainers within the health care sector with St Jude Medical ( STJ) 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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