Pharmacyclics Incorporated (PCYC): 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.

Pharmacyclics Incorporated ( PCYC) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 1%. By the end of trading, Pharmacyclics Incorporated fell $1.95 (-2.1%) to $92.25 on heavy volume. Throughout the day, 1.9 million shares of Pharmacyclics Incorporated exchanged hands as compared to its average daily volume of 639,300 shares. The stock ranged in price between $92.09-$94.50 after having opened the day at $94.47 as compared to the previous trading day's close of $94.20. Other companies within the Health Care sector that declined today were: SunLink Health Systems ( SSY), down 23.8%, AngioDynamics ( ANGO), down 12.6%, Oramed Pharmaceuticals ( ORMP), down 7.6%, and Advocat ( AVCA), down 7.3%.
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Pharmacyclics, Inc. operates as a clinical-stage biopharmaceutical company focusing on developing and commercializing small-molecule drugs for the treatment of cancer and immune mediated diseases. Pharmacyclics Incorporated has a market cap of $6.63 billion and is part of the drugs industry. The company has a P/E ratio of 73.2, above the S&P 500 P/E ratio of 17.7. Shares are up 63% year to date as of the close of trading on Thursday. Currently there are four analysts that rate Pharmacyclics Incorporated a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Pharmacyclics Incorporated as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Oxygen Biotherapeutics ( OXBT), up 19.1%, ARCA biopharma ( ABIO), up 18.7%, Celldex Therapeutics ( CLDX), up 17.4%, and Peregrine Pharmaceuticals ( PPHM), up 12.9%, were all gainers within the health care sector with Valeant Pharmaceuticals International ( VRX) 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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