FRX, AZN And ACT, 3 Health Care Stocks Pushing The Sector Lower

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 28 points (-0.2%) at 16,647 as of Wednesday, May 28, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,518 issues advancing vs. 1,472 declining with 153 unchanged.

The Health Care sector currently sits up 0.2% versus the S&P 500, which is unchanged. On the negative front, top decliners within the sector include Allergan ( AGN), down 4.3%, Valeant Pharmaceuticals International ( VRX), down 1.5%, Novo Nordisk A/S ( NVO), down 1.5%, Alexion Pharmaceuticals ( ALXN), down 1.1% and Regeneron Pharmaceuticals ( REGN), down 0.9%. Top gainers within the sector include Smith & Nephew ( SNN), up 3.7%, Stryker Corporation ( SYK), up 3.2%, St Jude Medical ( STJ), up 3.1%, Covidien ( COV), up 1.2% and Agilent Technologies ( A), up 1.1%.

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

3. Forest Laboratories ( FRX) is one of the companies pushing the Health Care sector lower today. As of noon trading, Forest Laboratories is down $1.11 (-1.2%) to $94.80 on light volume. Thus far, 620,783 shares of Forest Laboratories exchanged hands as compared to its average daily volume of 2.7 million shares. The stock has ranged in price between $94.45-$96.53 after having opened the day at $95.93 as compared to the previous trading day's close of $95.91.

Forest Laboratories, Inc. develops, manufactures, and sells branded forms of ethical drug products in the United States and Europe. Forest Laboratories has a market cap of $26.0 billion and is part of the drugs industry. Shares are up 59.8% year-to-date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Forest Laboratories a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Forest Laboratories as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, expanding profit margins, compelling growth in net income and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Forest Laboratories Ratings Report now.

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2. As of noon trading, AstraZeneca ( AZN) is down $0.68 (-0.9%) to $71.38 on average volume. Thus far, 2.9 million shares of AstraZeneca exchanged hands as compared to its average daily volume of 4.9 million shares. The stock has ranged in price between $70.80-$71.68 after having opened the day at $71.30 as compared to the previous trading day's close of $72.05.

AstraZeneca PLC is engaged in the discovery, development, and commercialization of medicines for cardiovascular and metabolic disease; oncology; respiratory, inflammation, and autoimmunity; and infection, neuroscience, and gastrointestinal disease areas worldwide. AstraZeneca has a market cap of $91.1 billion and is part of the drugs industry. Shares are up 21.7% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst that rates AstraZeneca a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates AstraZeneca 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, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full AstraZeneca Ratings Report now.

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1. As of noon trading, Actavis ( ACT) is down $3.34 (-1.6%) to $211.01 on light volume. Thus far, 862,050 shares of Actavis exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $209.87-$216.70 after having opened the day at $215.64 as compared to the previous trading day's close of $214.35.

Actavis plc, an integrated specialty pharmaceutical company, is engaged in the development, manufacture, marketing, sale, and distribution of pharmaceutical products in the Americas, Europe, the Middle East, Africa, Australia, and the Asia Pacific. Actavis has a market cap of $37.3 billion and is part of the drugs industry. Shares are up 27.2% year-to-date as of the close of trading on Tuesday. Currently there are 14 analysts that rate Actavis a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Actavis as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk. Get the full Actavis 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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