St Jude Medical Inc. (STJ): Today's Featured Health Care Winner

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.

St Jude Medical ( STJ) pushed the Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 0.4%. By the end of trading, St Jude Medical rose 72 cents (1.8%) to $40.15 on average volume. Throughout the day, 2.6 million shares of St Jude Medical exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in a price between $39.55-$40.29 after having opened the day at $39.59 as compared to the previous trading day's close of $39.43. Other companies within the Health Care sector that increased today were: IsoRay ( ISR), up 26.9%, Neuralstem ( CUR), up 26.6%, GTx ( GTXI), up 19.3%, and Response Genetics ( RGDX), up 18.4%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

St. Jude Medical, Inc. develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. It operates in four segments: Cardiac Rhythm Management, Cardiovascular, Atrial Fibrillation, and Neuromodulation. St Jude Medical has a market cap of $12.29 billion and is part of the health services industry. The company has a P/E ratio of 15.5, 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 14.1% year to date as of the close of trading on Tuesday. Currently there are 16 analysts that rate St Jude Medical a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates St Jude Medical as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, 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 lackluster performance in the stock itself.

On the negative front, Oncolytics Biotech ( ONCY), down 12.1%, Sunshine Heart ( SSH), down 9.8%, BSD Medical Corporation ( BSDM), down 9%, and Transition Therapeutics ( TTHI), down 8.8%, were all laggards within the health care sector with Centene Corporation ( CNC) being today's health care sector laggard.

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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.

null

More from Markets

Stocks Trade Mixed, Energy Shares Fall on Drop in Oil Prices

Stocks Trade Mixed, Energy Shares Fall on Drop in Oil Prices

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves

One Thing to Consider Over Memorial Day Weekend: Are Stocks About to Collapse?

One Thing to Consider Over Memorial Day Weekend: Are Stocks About to Collapse?