4 Stocks Pushing The Health Services Industry Higher

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 266 points (-2.0%) at 12,979 as of Wednesday, Nov. 7, 2012, 2:19 PM ET. The NYSE advances/declines ratio sits at 512 issues advancing vs. 2,488 declining with 87 unchanged.

The Health Services industry currently sits down 1.6% versus the S&P 500, which is down 1.9%. A company within the industry that increased today was HCA Holdings ( HCA), up 8.4%. On the negative front, top decliners within the industry include Humana ( HUM), down 8.1%, WellPoint ( WLP), down 5.1%, UnitedHealth Group ( UNH), down 3.8%, Life Technologies ( LIFE), down 3.4% and Becton Dickinson ( BDX), down 3.2%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry higher today:

4. Centene Corporation ( CNC) is one of the companies pushing the Health Services industry higher today. As of noon trading, Centene Corporation is up $4.15 (10.4%) to $44.02 on heavy volume Thus far, 1.9 million shares of Centene Corporation exchanged hands as compared to its average daily volume of 730,600 shares. The stock has ranged in price between $40.84-$44.30 after having opened the day at $40.84 as compared to the previous trading day's close of $39.87.

Centene Corporation operates as a multiline healthcare company in the United States. It operates through two segments, Medicaid Managed Care and Specialty Services. Centene Corporation has a market cap of $2.0 billion and is part of the health care sector. The company has a P/E ratio of 91.3, above the S&P 500 P/E ratio of 17.7. Shares are down 0.9% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Centene Corporation a buy, 2 analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Centene Corporation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full Centene Corporation Ratings Report now.

3. As of noon trading, Community Health Systems ( CYH) is up $1.92 (6.7%) to $30.60 on heavy volume Thus far, 5.0 million shares of Community Health Systems exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $29.91-$32.70 after having opened the day at $30.75 as compared to the previous trading day's close of $28.68.

Community Health Systems, Inc., together with its subsidiaries, provides general and specialized hospital healthcare services to patients in the United States. Community Health Systems has a market cap of $2.7 billion and is part of the health care sector. The company has a P/E ratio of 11.2, below the S&P 500 P/E ratio of 17.7. Shares are up 70.1% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Community Health Systems a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Community Health Systems as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Community Health Systems Ratings Report now.

2. As of noon trading, Universal Health Services ( UHS) is up $2.19 (5.0%) to $45.90 on heavy volume Thus far, 2.4 million shares of Universal Health Services exchanged hands as compared to its average daily volume of 909,900 shares. The stock has ranged in price between $44.50-$46.93 after having opened the day at $45.72 as compared to the previous trading day's close of $43.71.

Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. Universal Health Services has a market cap of $3.9 billion and is part of the health care sector. The company has a P/E ratio of 10.6, below the S&P 500 P/E ratio of 17.7. Shares are up 12.5% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Universal Health Services a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Universal Health Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels 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. Get the full Universal Health Services Ratings Report now.

1. As of noon trading, Tenet Healthcare ( THC) is up $2.54 (10.2%) to $27.49 on heavy volume Thus far, 6.6 million shares of Tenet Healthcare exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $25.90-$27.60 after having opened the day at $26.38 as compared to the previous trading day's close of $24.95.

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 $2.7 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 Tuesday. Currently there are 3 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. Get the full Tenet Healthcare Ratings Report now.

If you are interested in one of these 4 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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