Biogen Idec Inc (BIIB): 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

Biogen Idec ( BIIB) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 0.1%. By the end of trading, Biogen Idec fell $2.71 (-1.2%) to $227.13 on light volume. Throughout the day, 915,442 shares of Biogen Idec exchanged hands as compared to its average daily volume of 1,365,800 shares. The stock ranged in price between $224.58-$230.98 after having opened the day at $228.73 as compared to the previous trading day's close of $229.84. Other companies within the Health Care sector that declined today were: Savient Pharmaceuticals ( SVNT), down 14.1%, China Pharma ( CPHI), down 11.5%, Genvec ( GNVC), down 9.8% and Questcor Pharmaceuticals ( QCOR), down 9.5%.
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Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Biogen Idec has a market cap of $52.9 billion and is part of the drugs industry. The company has a P/E ratio of 35.4, above the S&P 500 P/E ratio of 17.7. Shares are up 52.2% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Biogen Idec a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Biogen Idec as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Apricus Biosciences ( APRI), down 19.1%, Insmed ( INSM), down 16.4%, Rosetta Genomics ( ROSG), down 15.7% and Optimer Pharmaceuticals ( OPTR), down 13.5% , were all gainers within the health care sector with Actavis ( ACT) 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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