WellPoint Inc (WLP): Today's Featured Health Services 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.

WellPoint ( WLP) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day down 0.1%. By the end of trading, WellPoint rose $2.48 (4.3%) to $60.46 on average volume. Throughout the day, 4.9 million shares of WellPoint exchanged hands as compared to its average daily volume of 3.6 million shares. The stock ranged in a price between $58.01-$60.46 after having opened the day at $58.30 as compared to the previous trading day's close of $57.98. Other companies within the Health Services industry that increased today were: Edap TMS ( EDAP), up 9.9%, Alphatec Holdings ( ATEC), up 6.1%, Cutera ( CUTR), up 5%, and Health Net ( HNT), up 4.8%.
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WellPoint, Inc., through its subsidiaries, operates as a health benefits company in the United States. The company offers various network-based managed care plans to large and small employer, individual, Medicaid, and senior markets. WellPoint has a market cap of $18.86 billion and is part of the health care sector. The company has a P/E ratio of 7.8, equal to the average health services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 12.4% year to date as of the close of trading on Monday. Currently there are nine analysts that rate WellPoint a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates WellPoint 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, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Spherix ( SPEX), down 11.6%, Kips Bay Medical ( KIPS), down 7.9%, Concord Medical Services Holdings ( CCM), down 7.1%, and LCA-Vision ( LCAV), down 7%, were all laggards within the health services industry with HCA Holdings ( HCA) 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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