Zimmer Holdings Inc (ZMH): Today's Featured Health Services Loser

Zimmer Holdings ( ZMH) pushed the Health Services industry lower today making it today's featured Health Services loser. The industry as a whole closed the day up 0.1%. By the end of trading, Zimmer Holdings fell 61 cents (-1.2%) to $49.08 on average volume. Throughout the day, 2.7 million shares of Zimmer Holdings exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $48.58-$49.49 after having opened the day at $49.29 as compared to the previous trading day's close of $49.69. Other company's within the Health Services industry that declined today were: American Caresource Holdings ( ANCI), down 9.1%, CHINA NUOKANG BIO-PHARMACEUTICAL ( NKBP), down 8.7%, CombiMatrix Corporation ( CBMX), down 7.1%, and BG Medicine ( BGMD), down 6.6%.

Zimmer Holdings, Inc., through its subsidiaries, engages in the design, development, manufacture, and marketing of orthopaedic reconstructive implants, spinal and trauma devices, dental implants, and related surgical products. Zimmer Holdings has a market cap of $8.89 billion and is part of the health care sector. The company has a P/E ratio of 14.9, equal to the average health services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 7.4% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Zimmer Holdings a buy, no analysts rate it a sell, and 15 rate it a hold.

TheStreet Ratings rates Zimmer 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, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, China Medical Technologies ( CMED), up 28%, TearLab Corpoartion ( TEAR), up 17.4%, IVAX Diagnostics ( IVD), up 11.8%, and Lakeland Industries ( LAKE), up 11.1%, were all gainers within the health services industry with Universal Health Services ( UHS) being today's featured health services industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health services industry could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health services industry could consider ProShares Ultra Short Health Care ( RXD).

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