Covidien PLC (COV): Today's Featured Health Services Loser

Covidien ( COV) pushed the Health Services industry lower today making it today's featured Health Services loser. The industry as a whole closed the day down 0.3%. By the end of trading, Covidien fell 50 cents (-0.9%) to $52.35 on average volume. Throughout the day, 2.9 million shares of Covidien exchanged hands as compared to its average daily volume of 2.9 million shares. The stock ranged in price between $52.25-$52.85 after having opened the day at $52.78 as compared to the previous trading day's close of $52.85. Other company's within the Health Services industry that declined today were: IsoRay ( ISR), down 16.3%, D Medical Industries ( DMED), down 13%, Sunshine Heart ( SSH), down 13%, and Dynacq Healthcare ( DYII), down 8.6%.

Covidien Public Limited Company develops, manufactures, and sells healthcare products for use in clinical and home settings in the United States and internationally. Covidien has a market cap of $25.36 billion and is part of the health care sector. The company has a P/E ratio of 13.1, equal to the average health services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 16.8% year to date as of the close of trading on Friday. Currently there are 15 analysts that rate Covidien a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates Covidien 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, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, CombiMatrix Corporation ( CBMX), up 23.6%, Conmed Healthcare Management ( CONM), up 13.3%, Spherix ( SPEX), up 12.7%, and Misonix ( MSON), up 9.7%, were all gainers within the health services industry with Medtronic ( MDT) 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).
null

If you liked this article you might like

Jim Cramer -- Deal Activity in Specialty Pharma Reaches a Frenzied Pace

Mallinckrodt Buys Ikaria in $2.3 Billion Hospital Treatment Deal

Stryker and Smith & Nephew Are the Stars to Watch in Medtech's 2015 Merger Dance

Medtronic Avoids U.S. Taxes While Saddling Shareholders With a Hefty Tax Bill

Trim Positions in Stryker Ahead of Fourth-Quarter Earnings; Buy on Pullback