Covidien PLC (COV): 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

Covidien ( COV) 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, Covidien fell $4.41 (-6.6%) to $61.96 on heavy volume. Throughout the day, 13,972,302 shares of Covidien exchanged hands as compared to its average daily volume of 2,101,900 shares. The stock ranged in price between $61.51-$65.35 after having opened the day at $65.23 as compared to the previous trading day's close of $66.37. Other companies within the Health Care sector that declined today were: Dyax Corporation ( DYAX), down 34.9%, Merit Medical Systems ( MMSI), down 12.2%, PerkinElmer ( PKI), down 11.9% and Atossa Genetics ( ATOS), down 7.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Covidien plc develops, manufactures, and sells healthcare products for use in clinical and home settings worldwide. Covidien has a market cap of $31.3 billion and is part of the health services industry. The company has a P/E ratio of 16.9, below the S&P 500 P/E ratio of 17.7. Shares are up 14.9% year to date as of the close of trading on Thursday.

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

On the positive front, Bacterin International Holdings ( BONE), down 17.1%, Tesaro ( TSRO), down 13.2%, MGC Diagnostics ( MGCD), down 13.2% and Oxygen Biotherapeutics ( OXBT), down 12.4% , were all gainers within the health care sector with Celgene Corporation ( CELG) 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).

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.

null

More from Markets

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet

Ford, GM Gain as China Slashes Auto Import Tariffs

Ford, GM Gain as China Slashes Auto Import Tariffs