3 Health Care Stocks Dragging The Sector Down

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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 147 points (1.0%) at 15,587 as of Thursday, Feb. 6, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 2,311 issues advancing vs. 626 declining with 152 unchanged.

The Health Care sector currently sits up 0.8% versus the S&P 500, which is up 1.0%. On the negative front, top decliners within the sector include Perrigo Company ( PRGO), down 3.5%, AstraZeneca ( AZN), down 2.1%, Sanofi ( SNY), down 1.8% and Teva Pharmaceutical Industries ( TEVA), down 1.6%. Top gainers within the sector include Smith & Nephew ( SNN), up 2.2%, Grifols ( GRFS), up 2.1%, Regeneron Pharmaceuticals ( REGN), up 2.0%, Biogen Idec ( BIIB), up 1.9% and Shire ( SHPG), up 1.8%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Alere ( ALR) is one of the companies pushing the Health Care sector lower today. As of noon trading, Alere is down $2.52 (-6.8%) to $34.41 on heavy volume. Thus far, 1.7 million shares of Alere exchanged hands as compared to its average daily volume of 579,800 shares. The stock has ranged in price between $33.70-$37.52 after having opened the day at $37.17 as compared to the previous trading day's close of $36.93.

Alere Inc. provides diagnostics and services for cardiology, infectious disease, toxicology, and diabetes in the United States and internationally. The company operates in three segments: Professional Diagnostics, Health Information Solutions, and Consumer Diagnostics. Alere has a market cap of $3.0 billion and is part of the health services industry. Shares are up 2.0% year-to-date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Alere a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Alere as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow. Get the full Alere Ratings Report now.

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

2. As of noon trading, Jazz Pharmaceuticals ( JAZZ) is down $3.84 (-2.6%) to $142.85 on light volume. Thus far, 287,501 shares of Jazz Pharmaceuticals exchanged hands as compared to its average daily volume of 866,500 shares. The stock has ranged in price between $142.55-$147.88 after having opened the day at $147.13 as compared to the previous trading day's close of $146.69.

Jazz Pharmaceuticals Public Limited Company, a specialty biopharmaceutical company, engages in the identification, development, and commercialization of pharmaceutical products for various medical needs in the United States, Europe, and other countries. Jazz Pharmaceuticals has a market cap of $8.5 billion and is part of the drugs industry. Shares are up 15.9% year-to-date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Jazz Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Jazz Pharmaceuticals 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, notable return on equity, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Jazz Pharmaceuticals Ratings Report now.

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

1. As of noon trading, Aetna ( AET) is down $1.31 (-1.9%) to $66.96 on average volume. Thus far, 1.6 million shares of Aetna exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $66.23-$67.42 after having opened the day at $66.76 as compared to the previous trading day's close of $68.27.

Aetna Inc. operates as a diversified health care benefits company in the United States. The company operates in three segments: Health Care, Group Insurance, and Large Case Pensions. Aetna has a market cap of $24.7 billion and is part of the health services industry. Shares are down 0.5% year-to-date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Aetna a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Aetna as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, attractive valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Aetna Ratings Report now.

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

If you are interested in one of these 5 stocks, 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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