Universal Health Services Inc. (UHS): 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.

Universal Health Services ( UHS) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day down 1.6%. By the end of trading, Universal Health Services rose $1.89 (4.3%) to $45.60 on heavy volume. Throughout the day, 3.2 million shares of Universal Health Services exchanged hands as compared to its average daily volume of 909,900 shares. The stock ranged in a 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. Other companies within the Health Services industry that increased today were: SunLink Health Systems ( SSY), up 29.8%, Centene Corporation ( CNC), up 10.1%, Tenet Healthcare ( THC), up 9.6%, and HCA Holdings ( HCA), up 9.4%.
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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 $3.92 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 three 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.

On the negative front, Spherix ( SPEX), down 12.1%, BG Medicine ( BGMD), down 9.2%, Misonix ( MSON), down 8.8%, and Kips Bay Medical ( KIPS), down 8.7%, were all laggards within the health services industry with WellPoint ( WLP) 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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