Actavis Inc (ACT): Today's Featured Health Care Winner

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

Actavis ( ACT) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day down 0.1%. By the end of trading, Actavis rose $2.20 (1.8%) to $123.88 on average volume. Throughout the day, 1,808,912 shares of Actavis exchanged hands as compared to its average daily volume of 1,376,900 shares. The stock ranged in a price between $121.45-$125.51 after having opened the day at $121.65 as compared to the previous trading day's close of $121.68. Other companies within the Health Care sector that increased today were: Apricus Biosciences ( APRI), up 19.1%, Insmed ( INSM), up 16.4%, Rosetta Genomics ( ROSG), up 15.7% and Optimer Pharmaceuticals ( OPTR), up 13.5%.
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Actavis, Inc., an integrated specialty pharmaceutical company, engages in developing, manufacturing, marketing, selling, and distributing generic, branded generic, brand, biosimilar, and over-the-counter pharmaceutical products worldwide. Actavis has a market cap of $15.4 billion and is part of the drugs industry. Shares are up 41.5% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Actavis a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Actavis as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Savient Pharmaceuticals ( SVNT), down 14.1%, China Pharma ( CPHI), down 11.5%, Genvec ( GNVC), down 9.8% and Questcor Pharmaceuticals ( QCOR), down 9.5% , were all laggards within the health care sector with Biogen Idec ( BIIB) being today's health care sector laggard.

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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