Arena Pharmaceuticals Inc. (ARNA): Health Care's Featured Stock Of The Day

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.

Arena Pharmaceuticals ( ARNA) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole was unchanged today. By the end of trading, Arena Pharmaceuticals rose 14 cents (1.7%) to $8.53 on average volume. Throughout the day, 11.2 million shares of Arena Pharmaceuticals exchanged hands as compared to its average daily volume of eight million shares. The stock ranged in a price between $8.40-$8.69 after having opened the day at $8.57 as compared to the previous trading day's close of $8.39. Other companies within the Health Care sector that increased today were: Stereotaxis ( STXS), up 33.5%, Novogen ( NVGN), up 15.7%, Horizon Pharma ( HZNP), up 14.3%, and Bovie Medical Corporation ( BVX), up 13.9%.
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Arena Pharmaceuticals, Inc., a biopharmaceutical company, engages in discovering, developing, and commercializing novel drugs that target G protein-coupled receptors in the therapeutic areas of cardiovascular, central nervous system, inflammatory, and metabolic diseases. Arena Pharmaceuticals has a market cap of $1.72 billion and is part of the drugs industry. Shares are down 12.4% year to date as of the close of trading on Friday. Currently there are three analysts that rate Arena Pharmaceuticals a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Arena Pharmaceuticals as a sell. The area that we feel has been the company's primary weakness has been its meager revenue growth.

On the negative front, Idenix Pharmaceuticals ( IDIX), down 19.8%, Redhill Biopharma ( RDHL), down 15.1%, Cell Therapeutics ( CTIC), down 13%, and Halozyme Therapeutics ( HALO), down 12.3%, were all laggards within the health care sector with Gilead ( GILD) being today's health care sector laggard.

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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