CareFusion Corp (CFN): Today's Featured Health Services Winner

CareFusion ( CFN) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day down 1.6%. By the end of trading, CareFusion rose $1.29 (5%) to $27.09 on heavy volume. Throughout the day, six million shares of CareFusion exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in a price between $25.59-$27.26 after having opened the day at $25.83 as compared to the previous trading day's close of $25.80. Other companies within the Health Services industry that increased today were: IsoRay ( ISR), up 14.6%, American Caresource Holdings ( ANCI), up 14.6%, Escalon Medical Corporation ( ESMC), up 10.5%, and CAS Medical Systems ( CASM), up 6%.

CareFusion Corporation, a medical technology company, provides various healthcare products and services in the United States and internationally. It operates in two segments, Critical Care Technologies, and Medical Technologies and Services. CareFusion has a market cap of $5.89 billion and is part of the health care sector. The company has a P/E ratio of 13.9, below the average health services industry P/E ratio of 20.3 and below the S&P 500 P/E ratio of 17.7. Shares are up 3.1% year to date as of the close of trading on Thursday. Currently there are eight analysts that rate CareFusion a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates CareFusion 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, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Graymark Healthcare ( GRMH), down 13.3%, Assisted Living Concepts ( ALC), down 12.4%, Mela ( MELA), down 8.8%, and Tengion ( TNGN), down 8.7%, were all losers within the health services industry with UnitedHealth Group ( UNH) being today's health services industry loser.

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).
null

If you liked this article you might like

Jim Cramer: The S&P 500 Isn’t as Passive as You Might Think

Jim Cramer's 'Mad Money' Recap: This Is One Stupid Market

3 Stocks Reiterated As A Buy: CFN, UTX, WHR

Insider Trading Alert - CFN, VSR And CAVM Traded By Insiders

Jim Cramer on the Stock Market: Spinoffs Are in Vogue