Vivus (VVUS): 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.

Vivus ( VVUS) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Vivus fell $1.52 (-12.3%) to $10.89 on heavy volume. Throughout the day, 7.4 million shares of Vivus exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in price between $10.75-$12.05 after having opened the day at $11.63 as compared to the previous trading day's close of $12.41. Other companies within the Health Care sector that declined today were: EntreMed ( ENMD), down 18.4%, Oxygen Biotherapeutics ( OXBT), down 17.2%, IsoRay ( ISR), down 14.1%, and Peregrine Pharmaceuticals ( PPHM), down 12.9%.
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VIVUS, Inc., a biopharmaceutical company, is developing therapies to address obesity, sleep apnea, diabetes, and male sexual health. Its lead investigational product, Qnexa, has completed Phase three clinical trials for the treatment of obesity. Vivus has a market cap of $1.27 billion and is part of the drugs industry. Shares are down 6.3% year to date as of the close of trading on Monday. Currently there are six analysts that rate Vivus a buy, two analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Vivus as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and feeble growth in its earnings per share.

On the positive front, Spherix ( SPEX), up 52.2%, MediciNova ( MNOV), up 39.3%, ProPhase Labs ( PRPH), up 28.5%, and Assisted Living Concepts ( ALC), up 22.8%, were all gainers within the health care sector with Actavis ( ACT) 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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