Valeant Pharmaceuticals International Inc (VRX): 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

Valeant Pharmaceuticals International ( VRX) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Valeant Pharmaceuticals International fell $1.12 (-1.5%) to $72.74 on average volume. Throughout the day, 1,264,785 shares of Valeant Pharmaceuticals International exchanged hands as compared to its average daily volume of 1,379,200 shares. The stock ranged in price between $72.33-$74.09 after having opened the day at $73.78 as compared to the previous trading day's close of $73.86. Other companies within the Health Care sector that declined today were: MediciNova ( MNOV), down 26.8%, Orthofix International N.V ( OFIX), down 15.6%, Dendreon ( DNDN), down 15.0% and Transcept Pharmaceuticals ( TSPT), down 13.9%.
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Valeant Pharmaceuticals International, Inc., a specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products and medical devices in the areas of neurology, dermatology, and branded generics. Valeant Pharmaceuticals International has a market cap of $22.7 billion and is part of the drugs industry. Shares are up 23.6% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Valeant Pharmaceuticals International a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates Valeant Pharmaceuticals International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and deteriorating net income.

On the positive front, Vermillion ( VRML), down 30.1%, Affymax ( AFFY), down 25.7%, XOMA ( XOMA), down 22.4% and Cormedix ( CRMD), down 14.3% , were all gainers within the health care sector with Alexion Pharmaceuticals ( ALXN) 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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