3 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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 12 points (0.1%) at 15,069 as of Wednesday, May 8, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,670 issues advancing vs. 1,254 declining with 121 unchanged.

The Health Care sector currently is unchanged today versus the S&P 500, which is up 0.2%. A company within the sector that fell today was Gilead ( GILD), up 1.47. Top gainers within the sector include Shire ( SHPG), up 2.6%, Grifols ( GRFS), up 2.5%, Sanofi ( SNY), up 2.2%, Medtronic ( MDT), up 0.8% and Celgene Corporation ( CELG), up 0.7%.

TheStreet Ratings group would like to highlight 3 stocks pushing the sector lower today:

3. Jazz Pharmaceuticals ( JAZZ) is one of the companies pushing the Health Care sector lower today. As of noon trading, Jazz Pharmaceuticals is down $5.91 (-9.9%) to $53.60 on heavy volume Thus far, 2.4 million shares of Jazz Pharmaceuticals exchanged hands as compared to its average daily volume of 646,000 shares. The stock has ranged in price between $53.29-$55.90 after having opened the day at $55.90 as compared to the previous trading day's close of $59.51.

Jazz Pharmaceuticals Public Limited Company, a specialty biopharmaceutical company, engages in the identification, development, and commercialization of pharmaceutical products for various medical needs in the United States, Europe, and other countries. Jazz Pharmaceuticals has a market cap of $3.5 billion and is part of the drugs industry. The company has a P/E ratio of 13.7, below the S&P 500 P/E ratio of 17.7. Shares are up 11.7% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Jazz Pharmaceuticals as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Jazz Pharmaceuticals Ratings Report now.

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2. As of noon trading, HCA Holdings ( HCA) is down $0.91 (-2.2%) to $40.27 on light volume Thus far, 1.5 million shares of HCA Holdings exchanged hands as compared to its average daily volume of 4.8 million shares. The stock has ranged in price between $40.16-$41.01 after having opened the day at $40.65 as compared to the previous trading day's close of $41.18.

HCA Holdings, Inc., through its subsidiaries, provides health care services in the United States. HCA Holdings has a market cap of $18.4 billion and is part of the health services industry. The company has a P/E ratio of 12.9, below the S&P 500 P/E ratio of 17.7. Shares are up 36.5% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates HCA Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, poor profit margins and weak operating cash flow. Get the full HCA Holdings Ratings Report now.

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1. As of noon trading, Bristol-Myers Squibb Company ( BMY) is down $0.25 (-0.6%) to $39.77 on light volume Thus far, 3.4 million shares of Bristol-Myers Squibb Company exchanged hands as compared to its average daily volume of 9.1 million shares. The stock has ranged in price between $39.72-$40.19 after having opened the day at $40.06 as compared to the previous trading day's close of $40.02.

Bristol-Myers Squibb Company, a biopharmaceutical company, discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products that help patients prevail over serious diseases worldwide. Bristol-Myers Squibb Company has a market cap of $65.7 billion and is part of the drugs industry. The company has a P/E ratio of 45.0, above the S&P 500 P/E ratio of 17.7. Shares are up 22.8% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Bristol-Myers Squibb Company as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Bristol-Myers Squibb Company Ratings Report now.

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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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