Hologic Inc (HOLX): 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.

Hologic ( HOLX) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Hologic fell 29 cents (-1.4%) to $19.75 on average volume. Throughout the day, 2.6 million shares of Hologic exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in price between $19.69-$20.18 after having opened the day at $20.06 as compared to the previous trading day's close of $20.04. Other companies within the Health Services industry that declined today were: Navidea Biopharmaceuticals ( NAVB), down 24.8%, Electromed ( ELMD), down 7.9%, Neostem ( NBS), down 7.1%, and Accuray ( ARAY), down 5.3%.

Hologic Inc. develops, manufactures, and supplies diagnostic, medical imaging systems, and surgical products for the healthcare needs of women. The company operates in four segments: Breast Health, Diagnostics, GYN Surgical, and Skeletal Health. Hologic has a market cap of $5.34 billion and is part of the health care sector. The company has a P/E ratio of 168.2, equal to the average health services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 15.2% year to date as of the close of trading on Monday. Currently there are 15 analysts that rate Hologic a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Hologic 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, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Hansen Medical ( HNSN), up 14.9%, Dehaier Medical Systems ( DHRM), up 13.1%, Spherix ( SPEX), up 10%, and Sunshine Heart ( SSH), up 7.6%, were all gainers within the health services industry with Cigna ( CI) 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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