Alexion Pharmaceuticals Inc. (ALXN): 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.

Alexion Pharmaceuticals ( ALXN) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 0.6%. By the end of trading, Alexion Pharmaceuticals rose $3.13 (3.6%) to $89.90 on average volume. Throughout the day, 2.3 million shares of Alexion Pharmaceuticals exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in a price between $86.11-$89.93 after having opened the day at $86.69 as compared to the previous trading day's close of $86.77. Other companies within the Health Care sector that increased today were: SunLink Health Systems ( SSY), up 20%, Theravance ( THRX), up 16.1%, MEI Pharma ( MEIP), up 14.2%, and Misonix ( MSON), up 13.2%.
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Alexion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of life-transforming therapeutic products. Alexion Pharmaceuticals has a market cap of $16.93 billion and is part of the drugs industry. The company has a P/E ratio of 67.8, above the S&P 500 P/E ratio of 17.7. Shares are down 7.5% year to date as of the close of trading on Friday. Currently there are 16 analysts that rate Alexion Pharmaceuticals a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Alexion Pharmaceuticals as a buy. 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, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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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