3 Stocks Pulling The Health Care Sector Downward

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.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 17 points (-0.1%) at 16,759 as of Monday, June 16, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,419 issues advancing vs. 1,541 declining with 179 unchanged.

The Health Care sector currently sits up 0.4% versus the S&P 500, which is unchanged. On the negative front, top decliners within the sector include Vertex Pharmaceuticals ( VRTX), down 8.0%, Medtronic ( MDT), down 2.7%, UnitedHealth Group ( UNH), down 0.9%, AbbVie ( ABBV), down 0.9% and Eli Lilly and ( LLY), down 0.6%.

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

3. Biogen Idec ( BIIB) is one of the companies pushing the Health Care sector lower today. As of noon trading, Biogen Idec is down $2.23 (-0.7%) to $307.75 on light volume. Thus far, 369,522 shares of Biogen Idec exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $306.76-$312.95 after having opened the day at $309.60 as compared to the previous trading day's close of $309.98.

Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of multiple sclerosis (MS), neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Biogen Idec has a market cap of $73.7 billion and is part of the drugs industry. Shares are up 10.9% year-to-date as of the close of trading on Friday. Currently there are 13 analysts that rate Biogen Idec a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Biogen Idec 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, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Biogen Idec 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, Merck ( MRK) is down $0.38 (-0.6%) to $57.86 on light volume. Thus far, 3.4 million shares of Merck exchanged hands as compared to its average daily volume of 10.4 million shares. The stock has ranged in price between $57.73-$58.38 after having opened the day at $58.06 as compared to the previous trading day's close of $58.24.

Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products worldwide. Merck has a market cap of $171.9 billion and is part of the drugs industry. Shares are up 16.4% year-to-date as of the close of trading on Friday. Currently there are 6 analysts that rate Merck a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Merck as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Merck 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, Allergan ( AGN) is down $1.83 (-1.1%) to $159.96 on light volume. Thus far, 1.0 million shares of Allergan exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $159.67-$161.50 after having opened the day at $160.92 as compared to the previous trading day's close of $161.79.

Allergan, Inc. operates as a multi-specialty health care company primarily in the United States, Europe, Latin America, and the Asia Pacific. Allergan has a market cap of $48.6 billion and is part of the drugs industry. Shares are up 45.6% year-to-date as of the close of trading on Friday. Currently there are 6 analysts that rate Allergan a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Allergan 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, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Allergan 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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