Tenet Healthcare Corp (THC): 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.

Tenet Healthcare ( THC) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Tenet Healthcare fell 97 cents (-3.7%) to $24.95 on heavy volume. Throughout the day, 4.7 million shares of Tenet Healthcare exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $24.36-$26.12 after having opened the day at $26.12 as compared to the previous trading day's close of $25.92. Other companies within the Health Services industry that declined today were: Kips Bay Medical ( KIPS), down 12.4%, Express Scripts ( ESRX), down 12.3%, Retractable Technologies ( RVP), down 8.7%, and Mindray Medical International ( MR), down 7.7%.
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Tenet Healthcare Corporation, an investor-owned health care services company, owns and operates acute care hospitals, ambulatory surgery centers, diagnostic imaging centers, and related health care facilities in the United States. Tenet Healthcare has a market cap of $2.61 billion and is part of the health care sector. The company has a P/E ratio of 45.9, above the S&P 500 P/E ratio of 17.7. Shares are up 17.4% year to date as of the close of trading on Monday. Currently there are three analysts that rate Tenet Healthcare a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Tenet Healthcare as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity and poor profit margins.

On the positive front, Graymark Healthcare ( GRMH), up 25%, Spectranetics Corporation ( SPNC), up 8.8%, Covance ( CVD), up 8.3%, and Acadia Healthcare Company ( ACHC), up 7.8%, were all gainers within the health services industry with Medtronic ( MDT) 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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