Celgene Corporation (CELG): 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

Celgene Corporation ( CELG) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 0.5%. By the end of trading, Celgene Corporation fell $2.26 (-1.9%) to $119.08 on light volume. Throughout the day, 2,161,898 shares of Celgene Corporation exchanged hands as compared to its average daily volume of 3,208,300 shares. The stock ranged in price between $118.09-$121.34 after having opened the day at $121.04 as compared to the previous trading day's close of $121.34. Other companies within the Health Care sector that declined today were: Cardium Therapeutics ( CXM), down 16.9%, CAS Medical Systems ( CASM), down 12.4%, Exact Sciences Corporation ( EXAS), down 11.4% and Sinovac Biotech ( SVA), down 9.9%.
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Celgene Corporation, a biopharmaceutical company, engages in the discovery, development, and commercialization of various therapies to treat cancer and immune-inflammatory related diseases in the United States, Europe, and other countries. Celgene Corporation has a market cap of $51.3 billion and is part of the drugs industry. The company has a P/E ratio of 37.1, above the S&P 500 P/E ratio of 17.7. Shares are up 56.1% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Celgene Corporation 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, notable return on equity, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, AdCare Health Systems ( ADK), down 36.7%, Catalyst Pharmaceutical Partners ( CPRX), down 19.1%, Theravance ( THRX), down 16.2% and Aoxing Pharmaceutical Company ( AXN), down 15.9% , were all gainers within the health care sector with Warner Chilcott ( WCRX) 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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