Johnson & Johnson (JNJ): Today's Favorite Health Care Gainer

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.

Johnson & Johnson ( JNJ) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 0.1%. By the end of trading, Johnson & Johnson rose $1.17 (1.5%) to $80.85 on average volume. Throughout the day, 12.6 million shares of Johnson & Johnson exchanged hands as compared to its average daily volume of 9.6 million shares. The stock ranged in a price between $79.85-$80.88 after having opened the day at $79.93 as compared to the previous trading day's close of $79.68. Other companies within the Health Care sector that increased today were: Bovie Medical Corporation ( BVX), up 28.7%, Opexa Therapeutics ( OPXA), up 23.7%, USMD Holdings ( USMD), up 12.3%, and Accelerate Diagnostics ( AXDX), up 10.9%.
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Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. Johnson & Johnson has a market cap of $223.04 billion and is part of the drugs industry. The company has a P/E ratio of 20.7, above the S&P 500 P/E ratio of 17.7. Shares are up 13.7% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Johnson & Johnson a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Johnson & Johnson as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, ZIOPHARM Oncology ( ZIOP), down 64.5%, Stereotaxis ( STXS), down 17.6%, CEL-SCI Corporation ( CVM), down 12.6%, and Strategic Diagnostics ( SDIX), down 10.8%, were all laggards within the health care sector with Keryx Biopharmaceuticals ( KERX) 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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