Teva Pharmaceutical Industries Ltd (TEVA): 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.

Teva Pharmaceutical Industries ( TEVA) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 1.9%. By the end of trading, Teva Pharmaceutical Industries fell 50 cents (-1.3%) to $37.58 on average volume. Throughout the day, 5.8 million shares of Teva Pharmaceutical Industries exchanged hands as compared to its average daily volume of 5.5 million shares. The stock ranged in price between $37.55-$38.06 after having opened the day at $37.77 as compared to the previous trading day's close of $38.08. Other companies within the Health Care sector that declined today were: Affymax ( AFFY), down 85.3%, Dynavax Technologies Corporation ( DVAX), down 32.3%, TrovaGene ( TROV), down 13.5%, and Peregrine Pharmaceuticals ( PPHM), down 12%.
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Teva Pharmaceutical Industries Limited develops, manufactures, and sells pharmaceutical products worldwide. Teva Pharmaceutical Industries has a market cap of $32.64 billion and is part of the drugs industry. The company has a P/E ratio of 16.9, below the S&P 500 P/E ratio of 17.7. Shares are up 2% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Teva Pharmaceutical Industries a buy, no analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Teva Pharmaceutical Industries as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.

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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