Eli Lilly And Company (LLY): 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

Eli Lilly and Company ( LLY) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 2.3%. By the end of trading, Eli Lilly and Company fell $1.96 (-3.8%) to $49.41 on heavy volume. Throughout the day, 7,860,489 shares of Eli Lilly and Company exchanged hands as compared to its average daily volume of 5,102,900 shares. The stock ranged in price between $49.21-$50.96 after having opened the day at $50.96 as compared to the previous trading day's close of $51.37. Other companies within the Health Care sector that declined today were: Pingtan Marine Enterprise ( PME), down 61.5%, USMD Holdings ( USMD), down 22.2%, MediciNova ( MNOV), down 11.9% and Progenics Pharmaceuticals ( PGNX), down 10.8%.
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Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. Eli Lilly and Company has a market cap of $59.0 billion and is part of the drugs industry. The company has a P/E ratio of 12.6, below the S&P 500 P/E ratio of 17.7. Shares are up 4.2% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Eli Lilly and Company a buy, 3 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Eli Lilly and Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Durect Corporation ( DRRX), down 17.4%, Prima Biomed ( PBMD), down 10.1%, Celsion Corporation ( CLSN), down 9.0% and Ligand Pharmaceuticals ( LGND), down 8.4%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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