5 Stocks Pushing The Health Services Industry Lower

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%. On the negative front, top decliners within the industry include Humana ( HUM), down 7.6%, WellPoint ( WLP), down 5.0%, UnitedHealth Group ( UNH), down 3.5%, Life Technologies ( LIFE), down 3.3% and Becton Dickinson ( BDX), down 3.0%. A company within the industry that increased today was HCA Holdings ( HCA), up 8.4%.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. St Jude Medical ( STJ) is one of the companies pushing the Health Services industry lower today. As of noon trading, St Jude Medical is down $1.40 (-3.6%) to $37.30 on heavy volume Thus far, 3.2 million shares of St Jude Medical exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $37.21-$38.69 after having opened the day at $38.44 as compared to the previous trading day's close of $38.70.

St. Jude Medical, Inc. develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. It operates in four segments: Cardiac Rhythm Management, Cardiovascular, Atrial Fibrillation, and Neuromodulation. St Jude Medical has a market cap of $12.2 billion and is part of the health care sector. The company has a P/E ratio of 14.6, below the S&P 500 P/E ratio of 17.7. Shares are up 12.9% year to date as of the close of trading on Tuesday. Currently there are 15 analysts that rate St Jude Medical a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates St Jude Medical as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, expanding profit margins 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 St Jude Medical Ratings Report now.

4. As of noon trading, Covidien ( COV) is down $0.98 (-1.8%) to $54.80 on heavy volume Thus far, 1.9 million shares of Covidien exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $54.09-$55.57 after having opened the day at $55.42 as compared to the previous trading day's close of $55.78.

Covidien Public Limited Company develops, manufactures, and sells healthcare products for use in clinical and home settings in the United States and internationally. Covidien has a market cap of $26.7 billion and is part of the health care sector. The company has a P/E ratio of 14.3, below the S&P 500 P/E ratio of 17.7. Shares are up 23.6% year to date as of the close of trading on Tuesday. Currently there are 15 analysts that rate Covidien a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Covidien 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Covidien Ratings Report now.

3. As of noon trading, Baxter International ( BAX) is down $0.46 (-0.7%) to $65.62 on heavy volume Thus far, 2.8 million shares of Baxter International exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $64.58-$65.99 after having opened the day at $65.76 as compared to the previous trading day's close of $66.08.

Baxter International Inc., through its subsidiaries, develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. Baxter International has a market cap of $35.8 billion and is part of the health care sector. The company has a P/E ratio of 15.9, below the S&P 500 P/E ratio of 17.7. Shares are up 31.9% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Baxter International a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Baxter International as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Baxter International Ratings Report now.

2. As of noon trading, Medtronic ( MDT) is down $1.04 (-2.4%) to $41.76 on heavy volume Thus far, 3.7 million shares of Medtronic exchanged hands as compared to its average daily volume of 4.4 million shares. The stock has ranged in price between $41.11-$42.45 after having opened the day at $42.39 as compared to the previous trading day's close of $42.81.

Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. Medtronic has a market cap of $43.0 billion and is part of the health care sector. The company has a P/E ratio of 12.9, below the S&P 500 P/E ratio of 17.7. Shares are up 11.9% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Medtronic a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Medtronic as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Medtronic Ratings Report now.

1. As of noon trading, Intuitive Surgical ( ISRG) is down $6.48 (-1.2%) to $537.42 on average volume Thus far, 246,637 shares of Intuitive Surgical exchanged hands as compared to its average daily volume of 355,000 shares. The stock has ranged in price between $531.00-$539.23 after having opened the day at $537.06 as compared to the previous trading day's close of $543.90.

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Intuitive Surgical has a market cap of $21.5 billion and is part of the health care sector. The company has a P/E ratio of 34.9, above the S&P 500 P/E ratio of 17.7. Shares are up 17.5% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Intuitive Surgical a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Intuitive Surgical 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, impressive record of earnings per share growth, compelling growth 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. Get the full Intuitive Surgical 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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