Medtronic Inc. (MDT): Today's Featured Health Services Laggard

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.

Medtronic ( MDT) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Medtronic fell 47 cents (-1.1%) to $42.80 on average volume. Throughout the day, 4.2 million shares of Medtronic exchanged hands as compared to its average daily volume of 4.5 million shares. The stock ranged in price between $42.62-$43.05 after having opened the day at $42.93 as compared to the previous trading day's close of $43.27. Other companies within the Health Services industry that declined today were: BSD Medical Corporation ( BSDM), down 5.6%, CAS Medical Systems ( CASM), down 5.4%, Hooper Holmes ( HH), down 5.3%, and LCA-Vision ( LCAV), down 4.8%.
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Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. Medtronic has a market cap of $43.61 billion and is part of the health care sector. The company has a P/E ratio of 13, below the S&P 500 P/E ratio of 17.7. Shares are up 13.1% year to date as of the close of trading on Friday. Currently there are 12 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, attractive valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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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