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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 21 points (-0.2%) at 12,999 as of Friday, Nov. 30, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,281 issues advancing vs. 1,584 declining with 138 unchanged.

The Health Services industry currently sits down 0.3% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the industry include Health Management Associates ( HMA), down 2.7%, Brookdale Senior Living ( BKD), down 1.6%, Intuitive Surgical ( ISRG), down 1.1% and DaVita HealthCare Partners ( DVA), down 0.8%. A company within the industry that increased today was Fresenius Medical Care Corporation ( FMS), up 1.1%.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Quest Diagnostics ( DGX) is one of the companies pushing the Health Services industry lower today. As of noon trading, Quest Diagnostics is down $0.50 (-0.9%) to $57.61 on average volume Thus far, 370,848 shares of Quest Diagnostics exchanged hands as compared to its average daily volume of 800,500 shares. The stock has ranged in price between $57.46-$58.22 after having opened the day at $58.01 as compared to the previous trading day's close of $58.11.

Quest Diagnostics Incorporated provides diagnostic testing, information, and services in the United States and internationally. Quest Diagnostics has a market cap of $9.1 billion and is part of the health care sector. The company has a P/E ratio of 13.4, below the S&P 500 P/E ratio of 17.7. Shares are up 0.1% year to date as of the close of trading on Thursday. Currently there is 1 analyst that rates Quest Diagnostics a buy, 1 analyst rates it a sell, and 13 rate it a hold.

TheStreet Ratings rates Quest Diagnostics as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures 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. Get the full Quest Diagnostics Ratings Report now.

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4. As of noon trading, Varian Medical Systems ( VAR) is down $0.46 (-0.7%) to $68.66 on light volume Thus far, 177,842 shares of Varian Medical Systems exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $68.45-$69.16 after having opened the day at $69.09 as compared to the previous trading day's close of $69.12.

Varian Medical Systems, Inc. designs, manufactures, sells, and services equipment and software products for treating cancer with radiotherapy, stereotactic radiotherapy, stereotactic body radiotherapy, stereotactic radiosurgery, and brachytherapy worldwide. Varian Medical Systems has a market cap of $7.6 billion and is part of the health care sector. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 2.9% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate Varian Medical Systems a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Varian Medical Systems 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, growth in earnings per share and increase in net income. 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 Varian Medical Systems Ratings Report now.

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3. As of noon trading, Boston Scientific ( BSX) is down $0.11 (-1.9%) to $5.52 on average volume Thus far, 7.9 million shares of Boston Scientific exchanged hands as compared to its average daily volume of 13.4 million shares. The stock has ranged in price between $5.52-$5.70 after having opened the day at $5.70 as compared to the previous trading day's close of $5.63.

Boston Scientific Corporation develops, manufactures, and markets medical devices used in various interventional medical specialties worldwide. Boston Scientific has a market cap of $7.8 billion and is part of the health care sector. Shares are up 6.6% year to date as of the close of trading on Thursday. 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 and weak operating cash flow. Get the full Boston Scientific Ratings Report now.

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2. As of noon trading, Becton Dickinson ( BDX) is down $0.50 (-0.7%) to $76.47 on average volume Thus far, 465,177 shares of Becton Dickinson exchanged hands as compared to its average daily volume of 989,900 shares. The stock has ranged in price between $76.40-$77.15 after having opened the day at $77.10 as compared to the previous trading day's close of $76.97.

Becton, Dickinson and Company, a medical technology company, develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. The company's BD Medical segment produces medical devices that are used in various healthcare settings. Becton Dickinson has a market cap of $15.3 billion and is part of the health care sector. The company has a P/E ratio of 14.6, below the S&P 500 P/E ratio of 17.7. Shares are up 3.9% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Becton Dickinson a buy, 4 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Becton Dickinson as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Becton Dickinson Ratings Report now.

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1. As of noon trading, Zimmer Holdings ( ZMH) is down $0.95 (-1.4%) to $65.41 on light volume Thus far, 262,878 shares of Zimmer Holdings exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $65.36-$66.47 after having opened the day at $66.18 as compared to the previous trading day's close of $66.36.

Zimmer Holdings, Inc., through its subsidiaries, engages in the design, development, manufacture, and marketing of orthopedic reconstructive devices, spinal and trauma devices, dental implants, and related surgical products in the Americas, Europe, and the Asia Pacific. Zimmer Holdings has a market cap of $11.5 billion and is part of the health care sector. The company has a P/E ratio of 15.4, below the S&P 500 P/E ratio of 17.7. Shares are up 23.7% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Zimmer Holdings a buy, no analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Zimmer Holdings as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Zimmer Holdings Ratings Report now.

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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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