Actavis Inc (ACT): 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.

Actavis ( ACT) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 0.5%. By the end of trading, Actavis rose $1.53 (1.8%) to $84.67 on average volume. Throughout the day, 1.4 million shares of Actavis exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in a price between $83.19-$86.97 after having opened the day at $83.23 as compared to the previous trading day's close of $83.14. Other companies within the Health Care sector that increased today were: Spherix ( SPEX), up 52.2%, MediciNova ( MNOV), up 39.3%, ProPhase Labs ( PRPH), up 28.5%, and Assisted Living Concepts ( ALC), up 22.8%.
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Actavis, Inc., an integrated specialty pharmaceutical company, focuses on developing, manufacturing, and distributing of generic, brand, and biosimilar products worldwide. Actavis has a market cap of $10.66 billion and is part of the drugs industry. The company has a P/E ratio of 67.5, above the S&P 500 P/E ratio of 17.7. Shares are unchanged year to date as of the close of trading on Monday. Currently there are 15 analysts that rate Actavis a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Actavis as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

On the negative front, EntreMed ( ENMD), down 18.4%, Oxygen Biotherapeutics ( OXBT), down 17.2%, IsoRay ( ISR), down 14.1%, and Peregrine Pharmaceuticals ( PPHM), down 12.9%, were all laggards within the health care sector with Vivus ( VVUS) 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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