Edwards Life Sciences Corp. (EW): 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.

Edwards Life ( EW) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 2.1%. By the end of trading, Edwards Life fell $1.10 (-1.1%) to $104 on heavy volume. Throughout the day, 1.6 million shares of Edwards Life exchanged hands as compared to its average daily volume of 834,100 shares. The stock ranged in price between $103.73-$104.95 after having opened the day at $104.56 as compared to the previous trading day's close of $105.10. Other companies within the Health Services industry that declined today were: Retractable Technologies ( RVP), down 9.3%, CombiMatrix Corporation ( CBMX), down 7.3%, Spherix ( SPEX), down 6.5%, and Solta Medical ( SLTM), down 6.1%.
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Edwards Lifesciences Corporation provides products and technologies to treat advanced cardiovascular diseases or critically ill patients worldwide. Edwards Life has a market cap of $12.18 billion and is part of the health care sector. The company has a P/E ratio of 49.4, below the average health services industry P/E ratio of 50.6 and above the S&P 500 P/E ratio of 17.7. Shares are up 48.7% year to date as of the close of trading on Friday. Currently there are nine analysts that rate Edwards Life a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Edwards Life 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, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, USMD Holdings ( USMD), up 419.4%, Escalon Medical Corporation ( ESMC), up 54.5%, Kips Bay Medical ( KIPS), up 10.7%, and Navidea Biopharmaceuticals ( NAVB), up 9.6%, were all gainers within the health services industry with Intuitive Surgical ( ISRG) 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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