Illumina Inc. (ILMN): 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.

Illumina ( ILMN) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Illumina fell 70 cents (-1.3%) to $52.57 on light volume. Throughout the day, 939,133 shares of Illumina exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $52.47-$53.69 after having opened the day at $53.35 as compared to the previous trading day's close of $53.27. Other companies within the Health Care sector that declined today were: Spectrum Pharmaceuticals ( SPPI), down 37.3%, Synergetics USA ( SURG), down 29.2%, Allied Healthcare Products ( AHPI), down 12.5%, and AdCare Health Systems ( ADK), down 10.3%.
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Illumina, Inc. develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation and biological function in North America, Europe, Latin America, the Asia-Pacific, the Middle East, and South Africa. Illumina has a market cap of $6.67 billion and is part of the drugs industry. The company has a P/E ratio of 47.6, above the S&P 500 P/E ratio of 17.7. Shares are down 4.2% year to date as of the close of trading on Tuesday. Currently there are eight analysts that rate Illumina a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates Illumina as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, iBio ( IBIO), up 15.4%, GenMark Diagnostics ( GNMK), up 10.1%, Amicus Therapeutics ( FOLD), up 8.1%, and Trius Therapeutics ( TSRX), up 7.9%, were all gainers within the health care sector with Tenet Healthcare ( THC) 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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