Perrigo Company (PRGO): 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

Perrigo Company ( PRGO) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Perrigo Company fell $2.55 (-2.1%) to $116.29 on heavy volume. Throughout the day, 1,732,568 shares of Perrigo Company exchanged hands as compared to its average daily volume of 561,300 shares. The stock ranged in price between $113.38-$116.86 after having opened the day at $116.86 as compared to the previous trading day's close of $118.84. Other companies within the Health Care sector that declined today were: Cutera ( CUTR), down 21.1%, Synta Pharmaceuticals ( SNTA), down 15.5%, Oculus Innovative ( OCLS), down 14.5% and Albany Molecular Research ( AMRI), down 14.3%.
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Perrigo Company, through its subsidiaries, develops, manufactures, and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, and active pharmaceutical ingredients (API) worldwide. Perrigo Company has a market cap of $11.2 billion and is part of the drugs industry. The company has a P/E ratio of 25.9, above the S&P 500 P/E ratio of 17.7. Shares are up 14.2% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Perrigo Company a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Perrigo Company as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, revenue growth, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Affymax ( AFFY), down 43.7%, Insulet Corporation ( PODD), down 14.9%, Pain Therapeutics ( PTIE), down 14.5% and MediciNova ( MNOV), down 12.3% , were all gainers within the health care sector with Thermo Fisher Scientific ( TMO) 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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