Community Health Systems Inc (CYH): Today's Featured Health Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Community Health Systems ( CYH) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole was unchanged today. By the end of trading, Community Health Systems fell 48 cents (-1.7%) to $27.69 on average volume. Throughout the day, 1.3 million shares of Community Health Systems exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $27.69-$28.10 after having opened the day at $28.10 as compared to the previous trading day's close of $28.17. Other companies within the Health Services industry that declined today were: Accuray ( ARAY), down 10.7%, Abiomed ( ABMD), down 9.8%, Urologix ( ULGX), down 7.2%, and Misonix ( MSON), down 7.2%.

Community Health Systems, Inc., together with its subsidiaries, provides general and specialized hospital healthcare services to patients in the United States. Community Health Systems has a market cap of $2.48 billion and is part of the health care sector. The company has a P/E ratio of nine, below the average health services industry P/E ratio of 11.5 and below the S&P 500 P/E ratio of 17.7. Shares are up 61.4% year to date as of the close of trading on Thursday. Currently there are six analysts that rate Community Health Systems a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Community Health Systems as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, CombiMatrix Corporation ( CBMX), up 13%, Retractable Technologies ( RVP), up 11.7%, American Caresource Holdings ( ANCI), up 9%, and Celsion Corporation ( CLSN), up 8.6%, were all gainers within the health services industry with Aetna ( AET) being today's featured health services industry leader.

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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