Stryker Corporation (SYK): 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.

Stryker Corporation ( SYK) 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, Stryker Corporation fell 91 cents (-1.4%) to $62.17 on average volume. Throughout the day, 2.1 million shares of Stryker Corporation exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $61.59-$62.77 after having opened the day at $62.75 as compared to the previous trading day's close of $63.08. Other companies within the Health Care sector that declined today were: Gentium SpA ( GENT), down 20.6%, Chelsea Therapeutics International ( CHTP), down 11%, Achillion Pharmaceuticals ( ACHN), down 10.8%, and Urologix ( ULGX), down 10.7%.
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Stryker Corporation, together with its subsidiaries, operates as a medical technology company. The company operates in three segments: Reconstructive, MedSurg, and Neurotechnology and Spine. Stryker Corporation has a market cap of $24.21 billion and is part of the health services industry. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 16.2% year to date as of the close of trading on Wednesday. Currently there are 13 analysts that rate Stryker Corporation a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Stryker Corporation 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, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, CombiMatrix Corporation ( CBMX), up 136%, NeuroMetrix ( NURO), up 29.2%, NeuroMetrix ( NUROD), up 29.2%, and Alimera ( ALIM), up 24.8%, were all gainers within the health care sector with WellCare Health Plans ( WCG) 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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