Edwards Life Sciences Corp. (EW): 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.

Edwards Life ( EW) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole was unchanged today. By the end of trading, Edwards Life fell $1.33 (-1.5%) to $90.07 on average volume. Throughout the day, 860,181 shares of Edwards Life exchanged hands as compared to its average daily volume of 954,500 shares. The stock ranged in price between $89.62-$91.65 after having opened the day at $91.19 as compared to the previous trading day's close of $91.40. Other companies within the Health Services industry that declined today were: Given Imaging ( GIVN), down 11.5%, Stereotaxis ( STXS), down 10.3%, ERBA Diagnostics ( ERB), down 10.1%, and Edap TMS ( EDAP), down 5.3%.
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Edwards Lifesciences Corporation provides products and technologies to treat advanced cardiovascular diseases or critically ill patients worldwide. Edwards Life has a market cap of $10.59 billion and is part of the health care sector. The company has a P/E ratio of 40.3, above the S&P 500 P/E ratio of 17.7. Shares are up 1.4% year to date as of the close of trading on Monday. Currently there are nine analysts that rate Edwards Life a buy, two analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Edwards Life 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, growth in earnings per share, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, CombiMatrix Corporation ( CBMX), up 7.1%, Fonar Corporation ( FONR), up 5.6%, Globus Medical Inc Class A ( GMED), up 5.5%, and Cutera ( CUTR), up 5.1%, 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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