Celgene Corporation (CELG): 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

Celgene Corporation ( CELG) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 1.0%. By the end of trading, Celgene Corporation fell $3.12 (-2.6%) to $117.77 on average volume. Throughout the day, 3,521,539 shares of Celgene Corporation exchanged hands as compared to its average daily volume of 3,158,100 shares. The stock ranged in price between $116.76-$121.44 after having opened the day at $120.92 as compared to the previous trading day's close of $120.89. Other companies within the Health Care sector that declined today were: Rigel Pharmaceuticals ( RIGL), down 18.1%, Pluristem Therapeutic ( PSTI), down 14.4%, Vermillion ( VRML), down 13.0% and BioTime ( BTX), down 12.2%.
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Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes therapies for the treatment of cancer and immune-inflammatory related diseases in the United States, Europe, and other countries. Celgene Corporation has a market cap of $51.6 billion and is part of the drugs industry. The company has a P/E ratio of 37.6, above the S&P 500 P/E ratio of 17.7. Shares are up 57.6% year to date as of the close of trading on Monday. Currently there are 21 analysts that rate Celgene Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Celgene Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Novogen ( NVGN), down 30.3%, NeuroMetrix ( NURO), down 30.0%, Infinity Pharmaceuticals ( INFI), down 23.5% and CardioNet ( BEAT), down 16.6%.

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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