Allergan Inc. (AGN): 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

Allergan ( AGN) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 0.9%. By the end of trading, Allergan rose $2.10 (2.2%) to $99.35 on average volume. Throughout the day, 2,120,587 shares of Allergan exchanged hands as compared to its average daily volume of 2,011,600 shares. The stock ranged in a price between $96.81-$99.35 after having opened the day at $97.45 as compared to the previous trading day's close of $97.25. Other companies within the Health Care sector that increased today were: Skystar Bio-Pharmaceutical Company ( SKBI), up 20.3%, Synthetic Biologics ( SYN), up 19.4%, Chelsea Therapeutics International ( CHTP), up 13.3% and Durect Corporation ( DRRX), up 12.9%.
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Allergan, Inc. operates as a multi-specialty healthcare company primarily in the United States, Europe, Latin America, and the Asia Pacific. Allergan has a market cap of $29.2 billion and is part of the drugs industry. The company has a P/E ratio of 26.4, above the S&P 500 P/E ratio of 17.7. Shares are up 6.0% year to date as of the close of trading on Wednesday. Currently there are 15 analysts that rate Allergan a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Allergan as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Urologix ( ULGX), down 25.0%, Senesco Technologies ( SNTI), down 12.5%, Vanda Pharmaceuticals ( VNDA), down 11.0% and Vermillion ( VRML), down 9.8%.

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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