3 Stocks Underperforming Today In The Health Care Sector

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 60 points (0.4%) at 16,517 as of Tuesday, April 1, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,859 issues advancing vs. 1,154 declining with 141 unchanged.

The Health Care sector currently sits up 0.7% versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the sector include Bristol-Myers Squibb Company ( BMY), down 1.1%, Novartis ( NVS), down 1.0%, Merck ( MRK), down 0.9%, Sanofi ( SNY), down 0.8% and Pfizer ( PFE), down 0.8%. Top gainers within the sector include Celgene Corporation ( CELG), up 3.5%, Gilead ( GILD), up 3.4%, Illumina ( ILMN), up 3.4%, Quest Diagnostics ( DGX), up 3.3% and Regeneron Pharmaceuticals ( REGN), up 2.6%.

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

3. Medicines Company ( MDCO) is one of the companies pushing the Health Care sector lower today. As of noon trading, Medicines Company is down $4.31 (-15.2%) to $24.11 on heavy volume. Thus far, 6.1 million shares of Medicines Company exchanged hands as compared to its average daily volume of 971,600 shares. The stock has ranged in price between $23.53-$24.69 after having opened the day at $23.89 as compared to the previous trading day's close of $28.42.

The Medicines Company provides medical solutions for patients in acute and intensive care hospitals worldwide. Medicines Company has a market cap of $1.8 billion and is part of the drugs industry. Shares are down 26.4% year-to-date as of the close of trading on Monday. Currently there are 5 analysts that rate Medicines Company a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Medicines Company as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income. Get the full Medicines Company 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, Novo Nordisk A/S ( NVO) is down $0.35 (-0.8%) to $45.30 on light volume. Thus far, 410,265 shares of Novo Nordisk A/S exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $45.15-$45.41 after having opened the day at $45.17 as compared to the previous trading day's close of $45.65.

Novo Nordisk A/S engages in the discovery, development, manufacture, and marketing of pharmaceutical products primarily in Denmark. It operates in two segments, Diabetes Care and Biopharmaceuticals. Novo Nordisk A/S has a market cap of $124.3 billion and is part of the drugs industry. Shares are up 23.5% year-to-date as of the close of trading on Monday. Currently there are 2 analysts that rate Novo Nordisk A/S a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Novo Nordisk A/S 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, notable return on equity, solid stock price performance and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Novo Nordisk A/S 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, Covidien ( COV) is down $1.32 (-1.8%) to $72.34 on heavy volume. Thus far, 1.7 million shares of Covidien exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $72.06-$73.76 after having opened the day at $73.76 as compared to the previous trading day's close of $73.66.

Covidien plc develops, manufactures, and sells healthcare products for use in clinical and home settings worldwide. Covidien has a market cap of $32.7 billion and is part of the health services industry. Shares are up 8.2% year-to-date as of the close of trading on Monday. Currently there are 15 analysts that rate Covidien a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Covidien as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Covidien 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 3 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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