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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 21 points (-0.1%) at 16,894 as of Friday, July 11, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,379 issues advancing vs. 1,581 declining with 154 unchanged.

The Health Care sector currently sits up 0.1% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the sector include GlaxoSmithKline ( GSK), down 1.4%, AbbVie ( ABBV), down 1.1%, Baxter International ( BAX), down 0.8%, Alexion Pharmaceuticals ( ALXN), down 0.8% and Merck ( MRK), down 0.6%. Top gainers within the sector include Shire ( SHPG), up 4.8%, Grifols ( GRFS), up 1.6%, Intuitive Surgical ( ISRG), up 1.5%, St Jude Medical ( STJ), up 1.0% and Vertex Pharmaceuticals ( VRTX), up 1.0%.

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

3. Novartis ( NVS) is one of the companies pushing the Health Care sector lower today. As of noon trading, Novartis is down $0.46 (-0.5%) to $89.35 on light volume. Thus far, 450,592 shares of Novartis exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $88.79-$89.48 after having opened the day at $88.87 as compared to the previous trading day's close of $89.81.

Its Pharmaceuticals division offers patented prescription medicines in various therapeutic areas, including oncology; primary care and established medicines; specialty care, such as ophthalmology, neuroscience, integrated hospital care, and critical care; and cardiovascular and metabolism. Novartis has a market cap of $220.4 billion and is part of the drugs industry. Shares are up 11.7% year-to-date as of the close of trading on Thursday. Currently there are 5 analysts that rate Novartis a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Novartis as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, growth in earnings per share 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 Novartis 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, Perrigo ( PRGO) is down $3.58 (-2.4%) to $143.69 on average volume. Thus far, 762,423 shares of Perrigo exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $143.48-$145.91 after having opened the day at $145.25 as compared to the previous trading day's close of $147.27.

Perrigo is buying Canam Care as of Jan 2012 for $36. Perrigo has a market cap of $19.8 billion and is part of the drugs industry. Shares are down 4.0% year-to-date as of the close of trading on Thursday. Currently there are 12 analysts that rate Perrigo a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Perrigo 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, good cash flow from operations, 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 Perrigo 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, Mylan ( MYL) is down $0.52 (-1.0%) to $50.19 on light volume. Thus far, 1.0 million shares of Mylan exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $49.95-$50.80 after having opened the day at $50.62 as compared to the previous trading day's close of $50.70.

Mylan Inc., a pharmaceutical company, develops, licenses, manufactures, markets, and distributes generic, branded generic, and specialty pharmaceuticals worldwide. It operates in two segments, Generics and Specialty. Mylan has a market cap of $18.7 billion and is part of the drugs industry. Shares are up 16.8% year-to-date as of the close of trading on Thursday. Currently there are 9 analysts that rate Mylan a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Mylan as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Mylan 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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