Allergan Inc. (AGN): 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

Allergan ( AGN) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 0.7%. By the end of trading, Allergan fell $3.54 (-3.7%) to $92.70 on heavy volume. Throughout the day, 11,658,674 shares of Allergan exchanged hands as compared to its average daily volume of 2,079,100 shares. The stock ranged in price between $90.85-$95.51 after having opened the day at $95.04 as compared to the previous trading day's close of $96.24. Other companies within the Health Care sector that declined today were: Pingtan Marine Enterprise ( PME), down 64.8%, Idenix Pharmaceuticals ( IDIX), down 30.7%, Genvec ( GNVC), down 17.4% and Biosante Pharmaceuticals ( BPAX), down 16.7%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

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 $29.4 billion and is part of the drugs industry. The company has a P/E ratio of 26.6, above the S&P 500 P/E ratio of 17.7. Shares are up 4.9% year to date as of the close of trading on Thursday. Currently there are 16 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 positive front, Oramed Pharmaceuticals ( ORMP), down 25.6%, Cytokinetics ( CYTK), down 22.0%, Escalon Medical Corporation ( ESMC), down 21.5% and Novogen ( NVGN), down 18.9% , 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).

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

null

More from Markets

Video: 2018 Is Actually a Normal Year for Stock Market Volatility

Video: 2018 Is Actually a Normal Year for Stock Market Volatility

3 Fierce Chinese Tech Stocks to Gamble on Right Now

3 Fierce Chinese Tech Stocks to Gamble on Right Now

Dow Falls Sharply as Wall Street Weighs Trump's New Trade Threats

Dow Falls Sharply as Wall Street Weighs Trump's New Trade Threats

General Electric Sells Distributed Power Unit to Advent for $3.25 Billion

General Electric Sells Distributed Power Unit to Advent for $3.25 Billion

BlackBerry CEO Talks Impact of Trump's Tariffs Among His Big Automaker Clients

BlackBerry CEO Talks Impact of Trump's Tariffs Among His Big Automaker Clients