Questcor Pharmaceuticals Inc. (QCOR): 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

Questcor Pharmaceuticals ( QCOR) 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, Questcor Pharmaceuticals fell $0.40 (-1.1%) to $37.21 on light volume. Throughout the day, 1,471,191 shares of Questcor Pharmaceuticals exchanged hands as compared to its average daily volume of 2,029,300 shares. The stock ranged in price between $36.89-$38.90 after having opened the day at $37.74 as compared to the previous trading day's close of $37.61. Other companies within the Health Care sector that declined today were: Bovie Medical Corporation ( BVX), down 9.9%, Peregrine Pharmaceuticals ( PPHM), down 9.3%, Edap TMS ( EDAP), down 8.6% and MediciNova ( MNOV), down 7.0%.
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Questcor Pharmaceuticals, Inc., a biopharmaceutical company, provides drugs for the treatment of multiple sclerosis, nephrotic syndrome, and infantile spasms indications. It primarily offers H.P. Questcor Pharmaceuticals has a market cap of $2.2 billion and is part of the drugs industry. The company has a P/E ratio of 11.6, below the S&P 500 P/E ratio of 17.7. Shares are up 39.7% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Questcor Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Questcor Pharmaceuticals 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, notable return on equity, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Durect Corporation ( DRRX), down 17.3%, Cormedix ( CRMD), down 15.1%, Unilife Corporation ( UNIS), down 14.2% and Affymax ( AFFY), down 14.2% , were all gainers within the health care sector with Amgen ( AMGN) 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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