Medtronic Inc. (MDT): 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

Medtronic ( MDT) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 0.8%. By the end of trading, Medtronic fell $0.82 (-1.6%) to $51.53 on heavy volume. Throughout the day, 11,117,931 shares of Medtronic exchanged hands as compared to its average daily volume of 4,044,600 shares. The stock ranged in price between $51.11-$52.60 after having opened the day at $51.98 as compared to the previous trading day's close of $52.35. Other companies within the Health Care sector that declined today were: Escalon Medical Corporation ( ESMC), down 15.3%, Lakeland Industries ( LAKE), down 14.3%, AMAG Pharmaceuticals ( AMAG), down 10.7% and Neptune Technologies & Bioressources ( NEPT), down 9.6%.
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Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. Medtronic has a market cap of $50.6 billion and is part of the health services industry. The company has a P/E ratio of 15.2, below the S&P 500 P/E ratio of 17.7. Shares are up 27.6% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Medtronic a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Medtronic as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, MannKind Corporation ( MNKD), down 16.2%, AcelRx Pharmaceuticals ( ACRX), down 13.4%, TranS1 ( TSON), down 13.2% and iBio ( IBIO), down 10.8% , were all gainers within the health care sector with Cubist Pharmaceuticals ( CBST) 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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