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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 54 points (-0.3%) at 17,085 as of Thursday, July 17, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 855 issues advancing vs. 2,057 declining with 204 unchanged.

The Health Care sector currently sits down 0.8% versus the S&P 500, which is down 0.5%. On the negative front, top decliners within the sector include Agilent Technologies ( A), down 2.0%, Boston Scientific ( BSX), down 1.6%, Regeneron Pharmaceuticals ( REGN), down 1.5%, Celgene ( CELG), down 1.3% and Novartis ( NVS), down 1.2%. Top gainers within the sector include Abbott Laboratories ( ABT), up 4.5%, UnitedHealth Group ( UNH), up 3.5%, Aetna ( AET), up 2.9%, WellPoint ( WLP), up 2.5% and Valeant Pharmaceuticals International ( VRX), up 0.7%.

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

3. AstraZeneca ( AZN) is one of the companies pushing the Health Care sector lower today. As of noon trading, AstraZeneca is down $0.98 (-1.3%) to $73.54 on light volume. Thus far, 648,364 shares of AstraZeneca exchanged hands as compared to its average daily volume of 5.6 million shares. The stock has ranged in price between $73.43-$74.32 after having opened the day at $73.89 as compared to the previous trading day's close of $74.52.

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 $94.7 billion and is part of the drugs industry. Shares are up 26.3% year-to-date as of the close of trading on Wednesday. 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.

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, Medtronic ( MDT) is down $0.71 (-1.1%) to $62.22 on average volume. Thus far, 4.1 million shares of Medtronic exchanged hands as compared to its average daily volume of 7.3 million shares. The stock has ranged in price between $61.96-$62.76 after having opened the day at $62.71 as compared to the previous trading day's close of $62.93.

Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. It operates through three segments: Cardiac and Vascular Group, Restorative Therapies Group, and Diabetes Group. Medtronic has a market cap of $63.3 billion and is part of the health services industry. Shares are up 10.8% year-to-date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Medtronic a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Medtronic as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures 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 Medtronic 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, Actavis ( ACT) is down $1.57 (-0.7%) to $216.36 on light volume. Thus far, 567,980 shares of Actavis exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $215.42-$217.99 after having opened the day at $217.50 as compared to the previous trading day's close of $217.93.

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 $38.2 billion and is part of the drugs industry. Shares are up 30.3% year-to-date as of the close of trading on Wednesday. Currently there are 15 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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