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

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%. 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 5 stocks pushing the industry lower today:

5. ResMed ( RMD) is one of the companies pushing the Health Services industry lower today. As of noon trading, ResMed is down $0.64 (-1.6%) to $40.08 on average volume Thus far, 759,417 shares of ResMed exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $39.73-$40.36 after having opened the day at $40.34 as compared to the previous trading day's close of $40.72.

ResMed Inc., through its subsidiaries, engages in the development, manufacture, and distribution of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders. ResMed has a market cap of $5.6 billion and is part of the health care sector. The company has a P/E ratio of 20.9, above the S&P 500 P/E ratio of 17.7. Shares are up 60.3% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate ResMed a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates ResMed 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full ResMed Ratings Report now.

4. As of noon trading, Laboratory Corporation of America Holdings ( LH) is down $1.15 (-1.4%) to $82.50 on light volume Thus far, 172,715 shares of Laboratory Corporation of America Holdings exchanged hands as compared to its average daily volume of 682,400 shares. The stock has ranged in price between $82.45-$83.52 after having opened the day at $83.52 as compared to the previous trading day's close of $83.65.

Laboratory Corporation of America Holdings operates as an independent clinical laboratory company in the United States. The company offers a range of testing services used by the medical profession in routine testing, patient diagnosis, and in the monitoring and treatment of diseases. Laboratory Corporation of America Holdings has a market cap of $7.8 billion and is part of the health care sector. The company has a P/E ratio of 13.6, below the S&P 500 P/E ratio of 17.7. Shares are down 4.2% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Laboratory Corporation of America Holdings a buy, 2 analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Laboratory Corporation of America Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, impressive record of earnings per share growth and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Laboratory Corporation of America Holdings Ratings Report now.

3. As of noon trading, Cigna ( CI) is down $0.42 (-0.8%) to $51.48 on light volume Thus far, 757,840 shares of Cigna exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $51.24-$51.89 after having opened the day at $51.89 as compared to the previous trading day's close of $51.90.

CIGNA Corporation, a health services organization, through its subsidiaries, provides insurance and related products and services in the United States and internationally. Cigna has a market cap of $14.4 billion and is part of the health care sector. The company has a P/E ratio of 9.3, below the S&P 500 P/E ratio of 17.7. Shares are up 23.5% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Cigna a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Cigna 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, solid stock price performance, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Cigna Ratings Report now.

2. As of noon trading, Humana ( HUM) is down $0.61 (-0.9%) to $66.34 on light volume Thus far, 547,771 shares of Humana exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $65.99-$66.97 after having opened the day at $66.78 as compared to the previous trading day's close of $66.95.

Humana Inc. operates as a health care company that offers a range of insurance products and health and wellness services that incorporate an integrated approach to lifelong well-being. Humana has a market cap of $10.4 billion and is part of the health care sector. The company has a P/E ratio of 8.7, below the S&P 500 P/E ratio of 17.7. Shares are down 25.2% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate Humana a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Humana 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 and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Humana Ratings Report now.

1. As of noon trading, Express Scripts ( ESRX) is down $0.31 (-0.6%) to $51.87 on light volume Thus far, 1.6 million shares of Express Scripts exchanged hands as compared to its average daily volume of 6.0 million shares. The stock has ranged in price between $51.54-$52.11 after having opened the day at $52.00 as compared to the previous trading day's close of $52.18.

Express Scripts Holding Company provides a range of pharmacy benefit management (PBM) services in North America. Express Scripts has a market cap of $42.6 billion and is part of the health care sector. The company has a P/E ratio of 30.1, above the S&P 500 P/E ratio of 17.7. Shares are up 16.6% year to date as of the close of trading on Monday. Currently there are 16 analysts that rate Express Scripts a buy, no analysts rate it a sell, and 3 rate it a hold.

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