Baxter International Inc. (BAX): 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.

Baxter International ( BAX) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day up 0.1%. By the end of trading, Baxter International rose 79 cents (1.2%) to $65.06 on average volume. Throughout the day, 3.6 million shares of Baxter International exchanged hands as compared to its average daily volume of 2.7 million shares. The stock ranged in a price between $64.27-$65.49 after having opened the day at $64.53 as compared to the previous trading day's close of $64.27. Other companies within the Health Services industry that increased today were: CombiMatrix Corporation ( CBMX), up 32.2%, Advocat ( AVCA), up 9.1%, CardioNet ( BEAT), up 8.9%, and Celsion Corporation ( CLSN), up 8.5%.
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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 $35.43 billion and is part of the health care sector. The company has a P/E ratio of 15.7, below the S&P 500 P/E ratio of 17.7. Shares are up 30.5% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Baxter International a buy, no analysts rate it a sell, and five 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, notable return on equity, 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.

On the negative front, Oculus Innovative ( OCLS), down 7.2%, SunLink Health Systems ( SSY), down 6.5%, BG Medicine ( BGMD), down 6.1%, and Cardica ( CRDC), down 5.7%, were all laggards within the health services industry with St Jude Medical ( STJ) 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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