3 Stocks Pushing The Health Care Sector Lower

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 10 points (0.1%) at 14,085 as of Thursday, Feb. 28, 2013, 12:04 PM ET. The NYSE advances/declines ratio sits at 1,607 issues advancing vs. 1,243 declining with 160 unchanged.

The Health Care sector currently sits up 0.4% versus the S&P 500, which is up 0.2%. A company within the sector that fell today was Thermo Fisher Scientific ( TMO), up 0.4%. Top gainers within the sector include Amgen ( AMGN), up 1.9%, Express Scripts ( ESRX), up 1.7%, DaVita HealthCare Partners ( DVA), up 1.4%, HCA Holdings ( HCA), up 1.1% and Sanofi ( SNY), up 1.0%.

TheStreet Ratings group would like to highlight 3 stocks pushing the sector lower today:

3. Shire ( SHPG) is one of the companies pushing the Health Care sector lower today. As of noon trading, Shire is down $2.09 (-2.2%) to $94.01 on average volume Thus far, 153,067 shares of Shire exchanged hands as compared to its average daily volume of 316,500 shares. The stock has ranged in price between $93.82-$94.93 after having opened the day at $93.87 as compared to the previous trading day's close of $96.10.

Shire plc, a specialty biopharmaceutical company, engages in the research and development, manufacture, sale, and distribution of pharmaceutical products. It operates in three segments: Specialty Pharmaceuticals, Human Genetic Therapies, and Regenerative Medicine. Shire has a market cap of $17.9 billion and is part of the drugs industry. The company has a P/E ratio of 24.3, above the S&P 500 P/E ratio of 17.7. Shares are up 3.4% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Shire a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Shire 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 and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Shire Ratings Report now.

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2. As of noon trading, Medivation ( MDVN) is down $2.07 (-4.2%) to $47.15 on average volume Thus far, 735,008 shares of Medivation exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $47.05-$49.13 after having opened the day at $48.80 as compared to the previous trading day's close of $49.22.

Medivation, Inc., a biopharmaceutical company, focuses on developing novel small molecule drugs for the treatment of serious diseases in the United States and Europe. Medivation has a market cap of $3.5 billion and is part of the drugs industry. Shares are down 3.8% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate Medivation a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Medivation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins, generally higher debt management risk and feeble growth in the company's earnings per share. Get the full Medivation Ratings Report now.

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1. As of noon trading, Onyx Pharmaceuticals ( ONXX) is down $2.75 (-3.6%) to $74.62 on average volume Thus far, 549,880 shares of Onyx Pharmaceuticals exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $74.35-$77.56 after having opened the day at $77.30 as compared to the previous trading day's close of $77.37.

Onyx Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of therapies that target the molecular mechanisms that cause cancer in the United States and internationally. Onyx Pharmaceuticals has a market cap of $5.2 billion and is part of the drugs industry. Shares are up 2.9% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Onyx Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Onyx Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall. Get the full Onyx Pharmaceuticals Ratings Report now.

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If you are interested in one of these 4 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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