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.
Cigna (
CI) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day up 0.5%. By the end of trading, Cigna rose 92 cents (1.9%) to $48.09 on average volume. Throughout the day, 2.7 million shares of Cigna exchanged hands as compared to its average daily volume of 2.5 million shares. The stock ranged in a price between $47.29-$48.46 after having opened the day at $47.29 as compared to the previous trading day's close of $47.17. Other companies within the Health Services industry that increased today were:
Fonar Corporation (
FONR), up 30.4%,
Escalon Medical Corporation (
ESMC), up 24.1%,
Urologix (
ULGX), up 7.2%, and
Grifols (
GRFS), up 5.6%.
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CIGNA Corporation, a health services organization, through its subsidiaries, provides insurance and related products and services in the United States and internationally. Cigna has a market cap of $13.56 billion and is part of the
health care sector. The company has a P/E ratio of 10.5, below the average health services industry P/E ratio of 10.8 and below the S&P 500 P/E ratio of 17.7. Shares are up 12.3% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Cigna a buy, no analysts rate it a sell, and five rate it a hold.
TheStreet Ratings rates Cigna as a
buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
On the negative front,
Stereotaxis (
STXS), down 11.9%,
Kips Bay Medical (
KIPS), down 9.9%,
CombiMatrix Corporation (
CBMX), down 8.7%, and
Graymark Healthcare (
GRMH), down 6.3%, were all laggards within the health services industry with
Centene Corporation (
CNC) being today's health services industry laggard.
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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