Stryker Corporation (SYK): 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.

Stryker Corporation ( SYK) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 0.1%. By the end of trading, Stryker Corporation fell 88 cents (-1.3%) to $65.93 on average volume. Throughout the day, 2.4 million shares of Stryker Corporation exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in price between $65.72-$66.72 after having opened the day at $66.50 as compared to the previous trading day's close of $66.81. Other companies within the Health Care sector that declined today were: Supernus Pharmaceuticals ( SUPN), down 19.7%, Albany Molecular Research ( AMRI), down 12.9%, SunLink Health Systems ( SSY), down 11.8%, and ARCA biopharma ( ABIO), down 10.3%.
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Stryker Corporation, a medical technology company, provides reconstructive, medical and surgical, and neurotechnology and spine products for doctors, hospitals, and other healthcare facilities. Stryker Corporation has a market cap of $25.37 billion and is part of the health services industry. The company has a P/E ratio of 19.7, above the S&P 500 P/E ratio of 17.7. Shares are up 21.9% year to date as of the close of trading on Thursday. Currently there are 13 analysts that rate Stryker Corporation a buy, no analysts rate it a sell, and 12 rate it a hold.

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

On the positive front, Progenics Pharmaceuticals ( PGNX), up 29%, Aoxing Pharmaceutical Company ( AXN), up 12%, Atossa Genetics ( ATOS), up 11.1%, and Idera Pharmaceuticals ( IDRA), up 10.9%, were all gainers within the health care sector with Alexion Pharmaceuticals ( ALXN) 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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