Mednax Inc. (MD): Today's Featured Health Care Loser

Mednax ( MD) pushed the Health Care sector lower today making it today's featured Health Care loser. The sector as a whole closed the day up 0.9%. By the end of trading, Mednax fell 42 cents (-0.6%) to $65.38 on heavy volume. Throughout the day, 538,940 shares of Mednax exchanged hands as compared to its average daily volume of 338,400 shares. The stock ranged in price between $64.64-$65.76 after having opened the day at $65.41 as compared to the previous trading day's close of $65.80. Other company's within the Health Care sector that declined today were: PetMed Express ( PETS), down 19.6%, NeurogesX ( NGSX), down 13.3%, Prima Biomed Ltd. ADR ( PBMD), down 11.5%, and Amyris ( AMRS), down 9.5%.

MEDNAX, Inc., together with its subsidiaries, provides neonatal, maternal-fetal, other pediatric subspecialties, and anesthesia physician services in the United States and Puerto Rico. Mednax has a market cap of $3.3 billion and is part of the health services industry. The company has a P/E ratio of 14.6, below the average health services industry P/E ratio of 15 and below the S&P 500 P/E ratio of 17.7. Shares are down 8.6% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Mednax a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Mednax as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Vertex Pharmaceuticals ( VRTX), up 55.4%, Insmed ( INSM), up 51.9%, Escalon Medical Corporation ( ESMC), up 33.3%, and Graymark Healthcare ( GRMH), up 28.2%, were all gainers within the health care sector with GlaxoSmithKline ( GSK) being today's featured health care sector winner.

For investors not wanting singular stock exposure, 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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