Illumina Inc. (ILMN): 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

Illumina ( ILMN) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day down 0.4%. By the end of trading, Illumina rose $1.08 (1.5%) to $73.08 on average volume. Throughout the day, 1,915,306 shares of Illumina exchanged hands as compared to its average daily volume of 1,324,200 shares. The stock ranged in a price between $71.76-$73.88 after having opened the day at $71.92 as compared to the previous trading day's close of $72.00. Other companies within the Health Care sector that increased today were: Peregrine Pharmaceuticals ( PPHM), up 18.8%, Oramed Pharmaceuticals ( ORMP), up 15.0%, Discovery Laboratories ( DSCO), up 12.7% and Lakeland Industries ( LAKE), up 12.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Illumina, Inc. develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation and biological function in North America, Europe, Latin America, the Asia-Pacific, the Middle East, and South Africa. Illumina has a market cap of $8.7 billion and is part of the drugs industry. The company has a P/E ratio of 92.9, above the S&P 500 P/E ratio of 17.7. Shares are up 25.3% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Illumina a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Illumina as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance 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, Biota Pharmaceuticals ( BOTA), down 65.6%, XenoPort ( XNPT), down 15.3%, ProPhase Labs ( PRPH), down 9.7% and Durect Corporation ( DRRX), down 9.1% , were all laggards within the health care sector with Cigna ( CI) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

null

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%