DaVita HealthCare Partners Inc (DVA): 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.

DaVita HealthCare Partners ( DVA) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day down 0.4%. By the end of trading, DaVita HealthCare Partners fell $1.45 (-1.3%) to $106.55 on heavy volume. Throughout the day, 1.7 million shares of DaVita HealthCare Partners exchanged hands as compared to its average daily volume of 990,000 shares. The stock ranged in price between $106.23-$108.80 after having opened the day at $107.88 as compared to the previous trading day's close of $108. Other companies within the Health Services industry that declined today were: Globus Medical Inc Class A ( GMED), down 8.8%, Response Genetics ( RGDX), down 8%, IMRIS ( IMRS), down 7.9%, and BSD Medical Corporation ( BSDM), down 7.2%.
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DaVita HealthCare Partners Inc. provides kidney dialysis services for patients suffering from chronic kidney failure, or end stage renal disease (ESRD) in the United States. DaVita HealthCare Partners has a market cap of $10.27 billion and is part of the health care sector. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are up 41.9% year to date as of the close of trading on Friday. Currently there are nine analysts that rate DaVita HealthCare Partners a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates DaVita HealthCare Partners as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Alphatec Holdings ( ATEC), up 13.4%, USMD Holdings ( USMD), up 12.9%, CardioNet ( BEAT), up 7.8%, and ERBA Diagnostics ( ERB), up 6%, were all gainers within the health services industry with HCA Holdings ( HCA) being today's featured health services industry leader.

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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