St Jude Medical Inc. (STJ): 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.

St Jude Medical ( STJ) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day up 0.6%. By the end of trading, St Jude Medical rose 36 cents (1%) to $36.08 on average volume. Throughout the day, 4.9 million shares of St Jude Medical exchanged hands as compared to its average daily volume of 4.1 million shares. The stock ranged in a price between $35.49-$36.44 after having opened the day at $35.72 as compared to the previous trading day's close of $35.72. Other companies within the Health Services industry that increased today were: MGC Diagnostics ( MGCD), up 11.6%, Unilife Corporation ( UNIS), up 10.2%, Cardica ( CRDC), up 8.4%, and Gentiva Health Services ( GTIV), up 5.9%.
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St. Jude Medical, Inc. develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. It operates in four segments: Cardiac Rhythm Management, Cardiovascular, Atrial Fibrillation, and Neuromodulation. St Jude Medical has a market cap of $10.89 billion and is part of the health care sector. The company has a P/E ratio of 14.8, below the S&P 500 P/E ratio of 17.7. Shares are up 3.1% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate St Jude Medical a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates St Jude Medical as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.

On the negative front, BG Medicine ( BGMD), down 5.2%, Hooper Holmes ( HH), down 5%, Select Medical Holdings Corporation ( SEM), down 5%, and Spherix ( SPEX), down 4.7%, were all laggards within the health services industry with Cooper Companies ( COO) being today's health services industry laggard.

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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