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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 9 points (-0.1%) at 12,786 as of Tuesday, Nov. 20, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,471 issues advancing vs. 1,424 declining with 128 unchanged.

The Health Services industry currently sits down 0.2% versus the S&P 500, which is up 0.0%. Top gainers within the industry include Life Technologies ( LIFE), up 1.6%, and Zimmer Holdings ( ZMH), up 0.6%. On the negative front, top decliners within the industry include Quest Diagnostics ( DGX), down 1.5%, DENTSPLY International ( XRAY), down 1.2%, Fresenius Medical Care Corporation ( FMS), down 0.9% and WellPoint ( WLP), down 0.7%.

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

4. Mednax ( MD) is one of the companies pushing the Health Services industry higher today. As of noon trading, Mednax is up $2.41 (3.3%) to $76.19 on heavy volume Thus far, 425,939 shares of Mednax exchanged hands as compared to its average daily volume of 358,400 shares. The stock has ranged in price between $74.02-$76.35 after having opened the day at $74.55 as compared to the previous trading day's close of $73.78.

MEDNAX, Inc., together with its subsidiaries, provides neonatal, maternal-fetal, other pediatric subspecialties, and anesthesia physician services in the United States and Puerto Rico. Mednax has a market cap of $3.7 billion and is part of the health care sector. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are up 2.3% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Mednax a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Mednax as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Mednax Ratings Report now.

3. As of noon trading, Boston Scientific ( BSX) is up $0.04 (0.8%) to $5.25 on heavy volume Thus far, 15.0 million shares of Boston Scientific exchanged hands as compared to its average daily volume of 11.5 million shares. The stock has ranged in price between $5.21-$5.34 after having opened the day at $5.25 as compared to the previous trading day's close of $5.21.

Boston Scientific Corporation develops, manufactures, and markets medical devices used in various interventional medical specialties worldwide. Boston Scientific has a market cap of $7.1 billion and is part of the health care sector. The company has a P/E ratio of -1.8, below the S&P 500 P/E ratio of 17.7. Shares are down 3.7% year to date as of the close of trading on Monday. Currently there are 5 analysts that rate Boston Scientific a buy, 1 analyst rates it a sell, and 15 rate it a hold.

TheStreet Ratings rates Boston Scientific as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself. Get the full Boston Scientific Ratings Report now.

2. As of noon trading, Stryker Corporation ( SYK) is up $0.61 (1.1%) to $53.61 on average volume Thus far, 919,620 shares of Stryker Corporation exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $52.80-$53.68 after having opened the day at $53.05 as compared to the previous trading day's close of $53.00.

Stryker Corporation, together with its subsidiaries, operates as a medical technology company. The company operates in three segments: Reconstructive, MedSurg, and Neurotechnology and Spine. Stryker Corporation has a market cap of $19.8 billion and is part of the health care sector. The company has a P/E ratio of 14.0, below the S&P 500 P/E ratio of 17.7. Shares are up 4.8% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Stryker Corporation a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Stryker Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and growth in earnings per share. 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 Stryker Corporation Ratings Report now.

1. As of noon trading, Medtronic ( MDT) is up $0.54 (1.3%) to $42.35 on average volume Thus far, 2.4 million shares of Medtronic exchanged hands as compared to its average daily volume of 4.5 million shares. The stock has ranged in price between $42.27-$42.97 after having opened the day at $42.54 as compared to the previous trading day's close of $41.81.

Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. Medtronic has a market cap of $41.9 billion and is part of the health care sector. The company has a P/E ratio of 12.5, below the S&P 500 P/E ratio of 17.7. Shares are up 9.3% year to date as of the close of trading on Monday. 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, notable return on equity and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Medtronic 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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