3 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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 17 points (0.1%) at 13,052 as of Thursday, Dec. 6, 2012, 11:50 AM ET. The NYSE advances/declines ratio sits at 1,459 issues advancing vs. 1,413 declining with 145 unchanged.

The Health Services industry currently sits up 0.2% versus the S&P 500, which is up 0.2%. A company within the industry that fell today was Baxter International ( BAX), up 0.6%. Top gainers within the industry include Bio-Reference Labs ( BRLI), up 5.4%, ResMed ( RMD), up 1.2%, Mindray Medical International ( MR), up 1.2%, Universal Health Services ( UHS), up 1.2% and Edwards Life ( EW), up 0.9%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. DENTSPLY International ( XRAY) is one of the companies pushing the Health Services industry lower today. As of noon trading, DENTSPLY International is down $0.25 (-0.6%) to $39.03 on light volume Thus far, 232,157 shares of DENTSPLY International exchanged hands as compared to its average daily volume of 835,500 shares. The stock has ranged in price between $38.85-$39.19 after having opened the day at $39.05 as compared to the previous trading day's close of $39.28.

DENTSPLY International Inc. designs, develops, manufactures, and markets dental consumable products, dental laboratory products, and dental specialty products worldwide. DENTSPLY International has a market cap of $5.6 billion and is part of the health care sector. The company has a P/E ratio of 24.8, above the S&P 500 P/E ratio of 17.7. Shares are up 11.9% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate DENTSPLY International a buy, 2 analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates DENTSPLY International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk. Get the full DENTSPLY International Ratings Report now.

EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

2. As of noon trading, Align Technology ( ALGN) is down $1.50 (-5.7%) to $24.64 on heavy volume Thus far, 3.9 million shares of Align Technology exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $23.45-$25.13 after having opened the day at $24.60 as compared to the previous trading day's close of $26.14.

Align Technology, Inc. designs, manufactures, and markets the invisalign system for treating malocclusion or the misalignment of teeth. Invisalign corrects malocclusion using a series of clear, nearly invisible, removable appliances that gently move teeth to a desired final position. Align Technology has a market cap of $2.2 billion and is part of the health care sector. The company has a P/E ratio of 31.6, above the S&P 500 P/E ratio of 17.7. Shares are up 10.2% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate Align Technology a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Align Technology 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, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Align Technology Ratings Report now.

EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

1. As of noon trading, Humana ( HUM) is down $0.33 (-0.5%) to $64.73 on light volume Thus far, 318,493 shares of Humana exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $64.56-$65.20 after having opened the day at $65.05 as compared to the previous trading day's close of $65.06.

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 $10.3 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 25.6% year to date as of the close of trading on Wednesday. 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.

EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

If you are interested in one of these 5 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.

null

More from Markets

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home