DaVita Inc (DVA): 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.

DaVita ( DVA) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.6%. By the end of trading, DaVita fell $1.14 (-1.1%) to $98.45 on average volume. Throughout the day, 929,409 shares of DaVita exchanged hands as compared to its average daily volume of 704,900 shares. The stock ranged in price between $98.15-$100.21 after having opened the day at $99.60 as compared to the previous trading day's close of $99.59. Other companies within the Health Services industry that declined today were: Escalon Medical Corporation ( ESMC), down 25%, Dehaier Medical Systems ( DHRM), down 6.2%, IsoRay ( ISR), down 5.9%, and Thermogenesis Corporation ( KOOL), down 5.6%.
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DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure, or end stage renal disease (ESRD) in the United States. DaVita has a market cap of $9.32 billion and is part of the health care sector. The company has a P/E ratio of 18, 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 31.4% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate DaVita a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates DaVita as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth 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, Graymark Healthcare ( GRMH), up 21.3%, Retractable Technologies ( RVP), up 11.3%, Response Genetics ( RGDX), up 9.8%, and CombiMatrix Corporation ( CBMX), up 9.6%, 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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