5 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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 115 points (-0.8%) at 13,894 as of Monday, Feb. 4, 2013, 11:49 AM ET. The NYSE advances/declines ratio sits at 654 issues advancing vs. 2,230 declining with 132 unchanged.

The Health Services industry currently sits down 0.9% versus the S&P 500, which is down 0.9%. On the negative front, top decliners within the industry include Thermo Fisher Scientific ( TMO), down 2.6%, Life Technologies ( LIFE), down 2.2%, Waters Corporation ( WAT), down 2.3%, Stryker Corporation ( SYK), down 1.3% and DaVita HealthCare Partners ( DVA), down 1.2%.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Covidien ( COV) is one of the companies pushing the Health Services industry lower today. As of noon trading, Covidien is down $0.38 (-0.6%) to $62.26 on light volume Thus far, 636,987 shares of Covidien exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $62.06-$62.61 after having opened the day at $62.25 as compared to the previous trading day's close of $62.65.

Covidien plc develops, manufactures, and sells healthcare products for use in clinical and home settings worldwide. Covidien has a market cap of $29.4 billion and is part of the health care sector. The company has a P/E ratio of 16.0, below the S&P 500 P/E ratio of 17.7. Shares are up 8.0% year to date as of the close of trading on Friday. Currently there are 15 analysts that rate Covidien a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Covidien as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, solid stock price performance, reasonable valuation levels, good cash flow from operations and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Covidien Ratings Report now.

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4. As of noon trading, WellPoint ( WLP) is down $0.39 (-0.6%) to $64.93 on light volume Thus far, 627,885 shares of WellPoint exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $64.69-$65.99 after having opened the day at $65.00 as compared to the previous trading day's close of $65.32.

WellPoint, Inc., through its subsidiaries, operates as a health benefits company in the United States. The company offers various network-based managed care plans to large and small employer, individual, Medicaid, and senior markets. WellPoint has a market cap of $19.7 billion and is part of the health care sector. The company has a P/E ratio of 8.6, below the S&P 500 P/E ratio of 17.7. Shares are up 6.4% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate WellPoint a buy, 1 analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates WellPoint as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full WellPoint Ratings Report now.

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3. As of noon trading, Medtronic ( MDT) is down $0.62 (-1.3%) to $46.30 on light volume Thus far, 1.4 million shares of Medtronic exchanged hands as compared to its average daily volume of 4.4 million shares. The stock has ranged in price between $46.29-$46.75 after having opened the day at $46.56 as compared to the previous trading day's close of $46.92.

Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. Medtronic has a market cap of $47.1 billion and is part of the health care sector. The company has a P/E ratio of 15.0, below the S&P 500 P/E ratio of 17.7. Shares are up 13.6% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Medtronic a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Medtronic as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, solid stock price performance, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Medtronic Ratings Report now.

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2. As of noon trading, Intuitive Surgical ( ISRG) is down $9.95 (-1.7%) to $573.72 on light volume Thus far, 117,774 shares of Intuitive Surgical exchanged hands as compared to its average daily volume of 429,400 shares. The stock has ranged in price between $573.72-$580.90 after having opened the day at $578.38 as compared to the previous trading day's close of $583.67.

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Intuitive Surgical has a market cap of $22.8 billion and is part of the health care sector. The company has a P/E ratio of 35.9, above the S&P 500 P/E ratio of 17.7. Shares are up 17.1% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Intuitive Surgical a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Intuitive Surgical as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Intuitive Surgical Ratings Report now.

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1. As of noon trading, Express Scripts ( ESRX) is down $0.60 (-1.1%) to $54.22 on light volume Thus far, 1.3 million shares of Express Scripts exchanged hands as compared to its average daily volume of 6.9 million shares. The stock has ranged in price between $54.21-$54.93 after having opened the day at $54.45 as compared to the previous trading day's close of $54.81.

Express Scripts Holding Company provides a range of pharmacy benefit management (PBM) services in North America. Express Scripts has a market cap of $43.6 billion and is part of the health care sector. The company has a P/E ratio of 30.9, above the S&P 500 P/E ratio of 17.7. Shares are down 1.1% year to date as of the close of trading on Friday. Currently there are 15 analysts that rate Express Scripts a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Express Scripts as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Express Scripts Ratings Report now.

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If you are interested in one of these 4 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.

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