Perrigo Company (PRGO): Today's Featured Health Care Winner

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.

Perrigo Company ( PRGO) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day down 0.6%. By the end of trading, Perrigo Company rose $2.21 (1.5%) to $153.25 on heavy volume. Throughout the day, 5,976,658 shares of Perrigo Company exchanged hands as compared to its average daily volume of 1,046,500 shares. The stock ranged in a price between $149.12-$153.25 after having opened the day at $149.59 as compared to the previous trading day's close of $151.04. Other companies within the Health Care sector that increased today were: Idenix Pharmaceuticals ( IDIX), up 17.8%, Idera Pharmaceuticals ( IDRA), up 15.1%, Puma Biotechnology ( PBYI), up 12.0% and Karyopharm Therapeutics ( KPTI), up 11.9%.

Perrigo Company, through its subsidiaries, develops, manufactures, and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, nutritional products, and active pharmaceutical ingredients (API). Perrigo Company has a market cap of $14.3 billion and is part of the drugs industry. The company has a P/E ratio of 32.0, above the S&P 500 P/E ratio of 17.7. Shares are up 45.9% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Perrigo Company a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Perrigo Company as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Targacept ( TRGT), down 34.3%, Rockwell Medical ( RMTI), down 19.8%, CombiMatrix Corporation ( CBMX), down 19.3% and Enzymotec ( ENZY), down 13.2% , were all laggards within the health care sector with Celgene Corporation ( CELG) being today's health care sector laggard.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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