5 Stocks Pulling The Health Care Sector Downward

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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 40 points (-0.3%) at 14,679 as of Wednesday, April 24, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,751 issues advancing vs. 1,159 declining with 143 unchanged.

The Health Care sector currently sits down 0.57 versus the S&P 500, which is unchanged. On the negative front, top decliners within the sector include Amgen ( AMGN), down 5.92, Vertex Pharmaceuticals ( VRTX), down 4.21, Celgene Corporation ( CELG), down 3.95, Gilead ( GILD), down 3.49 and Biogen Idec ( BIIB), down 1.90. A company within the sector that increased today was Sanofi ( SNY), up 0.68.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector lower today:

5. Edwards Life ( EW) is one of the companies pushing the Health Care sector lower today. As of noon trading, Edwards Life is down $19.09 (-23.1%) to $63.72 on heavy volume Thus far, 7.3 million shares of Edwards Life exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $63.50-$66.60 after having opened the day at $66.55 as compared to the previous trading day's close of $82.81.

Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. Edwards Life has a market cap of $9.5 billion and is part of the health services industry. The company has a P/E ratio of 33.7, above the S&P 500 P/E ratio of 17.7. Shares are down 8.2% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Edwards Life 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, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Edwards Life Ratings Report now.

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4. As of noon trading, Novartis ( NVS) is down $0.57 (-0.8%) to $72.66 on average volume Thus far, 1.1 million shares of Novartis exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $72.37-$72.88 after having opened the day at $72.80 as compared to the previous trading day's close of $73.23.

Novartis AG engages in the research, development, manufacture, and marketing of a range of healthcare products worldwide. Novartis has a market cap of $175.8 billion and is part of the drugs industry. The company has a P/E ratio of 18.7, above the S&P 500 P/E ratio of 17.7. Shares are up 15.7% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Novartis as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Novartis Ratings Report now.

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3. As of noon trading, Allergan ( AGN) is down $2.06 (-1.8%) to $112.03 on average volume Thus far, 545,596 shares of Allergan exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $111.96-$114.39 after having opened the day at $114.11 as compared to the previous trading day's close of $114.09.

Allergan, Inc. operates as a multi-specialty healthcare company primarily in the United States, Europe, Latin America, and the Asia Pacific. Allergan has a market cap of $34.0 billion and is part of the drugs industry. The company has a P/E ratio of 31.9, above the S&P 500 P/E ratio of 17.7. Shares are up 24.4% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Allergan 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, impressive record of earnings per share growth, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Allergan Ratings Report now.

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2. As of noon trading, Eli Lilly and Company ( LLY) is down $1.99 (-3.4%) to $56.34 on average volume Thus far, 3.5 million shares of Eli Lilly and Company exchanged hands as compared to its average daily volume of 5.4 million shares. The stock has ranged in price between $56.30-$58.33 after having opened the day at $58.02 as compared to the previous trading day's close of $58.33.

Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. Eli Lilly and Company has a market cap of $65.0 billion and is part of the drugs industry. The company has a P/E ratio of 15.7, below the S&P 500 P/E ratio of 17.7. Shares are up 18.3% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Eli Lilly and Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Eli Lilly and Company Ratings Report now.

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1. As of noon trading, Pfizer ( PFE) is down $0.30 (-1.0%) to $30.78 on average volume Thus far, 15.0 million shares of Pfizer exchanged hands as compared to its average daily volume of 31.5 million shares. The stock has ranged in price between $30.76-$31.13 after having opened the day at $31.08 as compared to the previous trading day's close of $31.08.

Pfizer Inc., a biopharmaceutical company, discovers, develops, manufactures, and sells medicines for people and animals worldwide. Pfizer has a market cap of $222.3 billion and is part of the drugs industry. The company has a P/E ratio of 24.5, above the S&P 500 P/E ratio of 17.7. Shares are up 23.9% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Pfizer as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, compelling growth in net income, 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 shows weak operating cash flow. Get the full Pfizer Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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