Illumina Inc. (ILMN): 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.

Illumina ( ILMN) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 0.6%. By the end of trading, Illumina fell $1.03 (-2%) to $50.59 on light volume. Throughout the day, 1.2 million shares of Illumina exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in price between $50.46-$51.60 after having opened the day at $51.43 as compared to the previous trading day's close of $51.62. Other companies within the Health Care sector that declined today were: Celsion Corporation ( CLSN), down 13.4%, Telik ( TELK), down 12.1%, Aoxing Pharmaceutical Company ( AXN), down 12%, and Zalicus ( ZLCS), down 10%.
  • 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.

Illumina, Inc. develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation and biological function in North America, Europe, Latin America, the Asia-Pacific, the Middle East, and South Africa. Illumina has a market cap of $6.49 billion and is part of the drugs industry. The company has a P/E ratio of 75.2, above the S&P 500 P/E ratio of 17.7. Shares are down 5.3% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Illumina a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates Illumina as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.

null

More from Markets

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers

OPEC Deal Doesn't Boost Production Enough to Drive Down Crude, Gasoline Prices

OPEC Deal Doesn't Boost Production Enough to Drive Down Crude, Gasoline Prices