Aetna Inc (AET): Today's Featured Health Services Winner

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.

Aetna ( AET) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day up 0.9%. By the end of trading, Aetna rose 61 cents (1.3%) to $46.18 on light volume. Throughout the day, 2.5 million shares of Aetna exchanged hands as compared to its average daily volume of 4.7 million shares. The stock ranged in a price between $45.50-$46.28 after having opened the day at $45.51 as compared to the previous trading day's close of $45.57. Other companies within the Health Services industry that increased today were: Arrhythmia Research Technology ( HRT), up 15.7%, Stereotaxis ( STXS), up 11.3%, Electromed ( ELMD), up 9.9%, and Rockwell Medical ( RMTI), up 7.4%.
  • 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.

Aetna Inc. operates as a diversified health care benefits company in the United States. The company operates in three segments: Health Care, Group Insurance, and Large Case Pensions. Aetna has a market cap of $15.38 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 up 9% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Aetna a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Aetna as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, increase in net income, 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 shows weak operating cash flow.

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).

Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.

null

More from Markets

Global Markets Hit Hard; AMC Entertainment Sells Stake in Ad Unit -- ICYMI

Global Markets Hit Hard; AMC Entertainment Sells Stake in Ad Unit -- ICYMI

CVS, Walgreens and Citigroup: Cramer's 'Off the Charts'

CVS, Walgreens and Citigroup: Cramer's 'Off the Charts'

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

General Electric Booted From Dow, Replaced by Walgreens

General Electric Booted From Dow, Replaced by Walgreens

Dow Plunges on Trade War Worries but Walmart and Verizon Finish Positively

Dow Plunges on Trade War Worries but Walmart and Verizon Finish Positively