Catamaran Corp (CTRX): Today's Featured Health Care Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Catamaran ( CTRX) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 1.4%. By the end of trading, Catamaran fell $0.51 (-1.1%) to $45.89 on heavy volume. Throughout the day, 2,894,092 shares of Catamaran exchanged hands as compared to its average daily volume of 1,921,500 shares. The stock ranged in price between $45.20-$46.55 after having opened the day at $46.46 as compared to the previous trading day's close of $46.40. Other companies within the Health Care sector that declined today were: Mast Therapeutics ( MSTX), down 38.1%, Oncolytics Biotech ( ONCY), down 23.8%, IntelliPharmaCeutics International ( IPCI), down 11.4% and Can Fite Biofarma Ltd. ADR ( CANF), down 11.0%.

Catamaran Corporation provides pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefits management industry in North America. The company operates in two segments: PBM and HCIT. Catamaran has a market cap of $9.6 billion and is part of the health services industry. The company has a P/E ratio of 41.0, above the S&P 500 P/E ratio of 17.7. Shares are down 1.7% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Catamaran a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Catamaran 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, compelling growth in net income, impressive record of earnings per share growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, CombiMatrix Corporation ( CBMX), up 36.3%, Cardiome Pharma Corporation ( CRME), up 19.7%, Hooper Holmes ( HH), up 15.2% and Fonar Corporation ( FONR), up 14.9% , were all gainers within the health care sector with GlaxoSmithKline ( GSK) 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.
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