Catamaran Corp (CTRX): 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

Catamaran ( CTRX) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 0.4%. By the end of trading, Catamaran fell $1.40 (-2.7%) to $50.98 on heavy volume. Throughout the day, 2,364,618 shares of Catamaran exchanged hands as compared to its average daily volume of 1,521,200 shares. The stock ranged in price between $50.21-$52.64 after having opened the day at $52.26 as compared to the previous trading day's close of $52.38. Other companies within the Health Care sector that declined today were: Senesco Technologies ( SNT), down 64.8%, Senesco Technologies ( SNTI), down 64.8%, Prima Biomed ( PBMD), down 15.5% and AdCare Health Systems ( ADK), down 12.4%.
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Catamaran Corporation provides pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefits management industry in North America. The company operates in two segments: PBM and HCIT. Catamaran has a market cap of $11.0 billion and is part of the health services industry. The company has a P/E ratio of 71.9, above the S&P 500 P/E ratio of 17.7. Shares are up 13.0% year to date as of the close of trading on Thursday. Currently there are 13 analysts that rate Catamaran a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Catamaran as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, compelling growth in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, EnteroMedics ( ETRM), down 22.1%, Vanda Pharmaceuticals ( VNDA), down 19.6%, TrovaGene ( TROV), down 11.9% and Edap TMS ( EDAP), down 10.9% , were all gainers within the health care sector with Celgene Corporation ( CELG) 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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