Today's Health Care Sector Featured Laggard: Gilead Sciences Inc (GILD)

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.

Gilead ( GILD) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole was unchanged today. By the end of trading, Gilead fell 53 cents (-1.2%) to $44.98 on average volume. Throughout the day, 12.1 million shares of Gilead exchanged hands as compared to its average daily volume of nine million shares. The stock ranged in price between $44.76-$46.13 after having opened the day at $46.01 as compared to the previous trading day's close of $45.51. Other companies within the Health Care sector that declined today were: Idenix Pharmaceuticals ( IDIX), down 19.8%, Redhill Biopharma ( RDHL), down 15.1%, Cell Therapeutics ( CTIC), down 13%, and Halozyme Therapeutics ( HALO), down 12.3%.
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Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes human therapeutics for the treatment of life threatening diseases in North America, Europe, and Asia. Gilead has a market cap of $67.85 billion and is part of the drugs industry. The company has a P/E ratio of 27.1, above the S&P 500 P/E ratio of 17.7. Shares are up 21.3% year to date as of the close of trading on Friday. Currently there are 19 analysts that rate Gilead a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Gilead as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Stereotaxis ( STXS), up 33.5%, Novogen ( NVGN), up 15.7%, Horizon Pharma ( HZNP), up 14.3%, and Bovie Medical Corporation ( BVX), up 13.9%, were all gainers within the health care sector with Arena Pharmaceuticals ( ARNA) 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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