Universal Health Services Inc. (UHS): 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.

Universal Health Services ( UHS) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 1.3%. By the end of trading, Universal Health Services fell 55 cents (-1.2%) to $45.62 on light volume. Throughout the day, 533,718 shares of Universal Health Services exchanged hands as compared to its average daily volume of 967,400 shares. The stock ranged in price between $45.57-$46.40 after having opened the day at $46.25 as compared to the previous trading day's close of $46.17. Other companies within the Health Services industry that declined today were: Cardica ( CRDC), down 19.4%, IsoRay ( ISR), down 7.8%, TranS1 ( TSON), down 7.7%, and CAS Medical Systems ( CASM), down 7.4%.
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Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. Universal Health Services has a market cap of $4.06 billion and is part of the health care sector. The company has a P/E ratio of 10.9, below the S&P 500 P/E ratio of 17.7. Shares are up 18.8% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Universal Health Services a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Universal Health Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, CombiMatrix Corporation ( CBMX), up 336.6%, ZELTIQ Aesthetics ( ZLTQ), up 6.8%, ERBA Diagnostics ( ERB), up 4.8%, and WellCare Health Plans ( WCG), up 3.5%, were all gainers within the health services industry with Aetna ( AET) 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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