3 Stocks Dragging 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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 57 points (0.3%) at 16,611 as of Monday, Aug. 11, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,452 issues advancing vs. 535 declining with 124 unchanged.

The Health Care sector currently sits up 1.1% versus the S&P 500, which is up 0.6%. On the negative front, top decliners within the sector include Allergan ( AGN), down 2.2%, Illumina ( ILMN), down 2.1%, HCA Holdings ( HCA), down 1.0%, Aetna ( AET), down 0.9% and Mylan ( MYL), down 0.8%. Top gainers within the sector include Alnylam Pharmaceuticals ( ALNY), up 3.5%, ResMed ( RMD), up 2.3%, Incyte ( INCY), up 2.1%, Smith & Nephew ( SNN), up 2.1% and Pharmacyclics ( PCYC), up 1.9%.

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

3. Dr Reddy Laboratories ( RDY) is one of the companies pushing the Health Care sector lower today. As of noon trading, Dr Reddy Laboratories is down $0.81 (-1.8%) to $44.30 on light volume. Thus far, 63,799 shares of Dr Reddy Laboratories exchanged hands as compared to its average daily volume of 367,000 shares. The stock has ranged in price between $44.16-$44.44 after having opened the day at $44.28 as compared to the previous trading day's close of $45.11.

Dr. Reddy's Laboratories Limited operates as an integrated pharmaceutical company in India. It operates in three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. Dr Reddy Laboratories has a market cap of $7.6 billion and is part of the drugs industry. Shares are up 8.9% year-to-date as of the close of trading on Friday. Currently there is 1 analyst that rates Dr Reddy Laboratories a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Dr Reddy Laboratories as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Dr Reddy Laboratories 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, Jazz Pharmaceuticals ( JAZZ) is down $1.91 (-1.4%) to $134.67 on light volume. Thus far, 252,148 shares of Jazz Pharmaceuticals exchanged hands as compared to its average daily volume of 844,000 shares. The stock has ranged in price between $134.15-$137.74 after having opened the day at $135.57 as compared to the previous trading day's close of $136.58.

Jazz Pharmaceuticals Public Limited Company, a specialty biopharmaceutical company, identifies, develops, and commercializes pharmaceutical products for various medical needs in the United States, Europe, and internationally. Jazz Pharmaceuticals has a market cap of $8.2 billion and is part of the drugs industry. Shares are up 7.0% year-to-date as of the close of trading on Friday. Currently there are 9 analysts that rate Jazz Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Jazz Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and premium valuation. Get the full Jazz Pharmaceuticals 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, Valeant Pharmaceuticals International ( VRX) is down $1.66 (-1.5%) to $107.51 on average volume. Thus far, 2.1 million shares of Valeant Pharmaceuticals International exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $106.00-$110.62 after having opened the day at $109.95 as compared to the previous trading day's close of $109.17.

Valeant Pharmaceuticals International, Inc. develops, manufactures, and markets pharmaceuticals, over-the-counter (OTC) products, and medical devices in the areas of eye health, dermatology, and neurology therapeutic classes worldwide. Valeant Pharmaceuticals International has a market cap of $35.8 billion and is part of the drugs industry. Shares are down 9.1% year-to-date as of the close of trading on Friday. Currently there are 9 analysts that rate Valeant Pharmaceuticals International a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Valeant Pharmaceuticals International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year and increase in net income. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good. Get the full Valeant Pharmaceuticals International 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).

null

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%