3 Stocks Pushing The Health Services Industry Higher

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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 15 points (-0.1%) at 14,074 as of Monday, March 4, 2013, 12:05 PM ET. The NYSE advances/declines ratio sits at 1,220 issues advancing vs. 1,591 declining with 184 unchanged.

The Health Services industry currently is unchanged today versus the S&P 500, which is unchanged. Top gainers within the industry include Smith & Nephew ( SNN), up 0.8%, and HCA Holdings ( HCA), up 0.6%. On the negative front, top decliners within the industry include Intuitive Surgical ( ISRG), down 3.0%, Humana ( HUM), down 1.4%, Zimmer Holdings ( ZMH), down 0.7%, Medtronic ( MDT), down 0.7% and Aetna ( AET), down 0.5%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry higher today:

3. Brookdale Senior Living ( BKD) is one of the companies pushing the Health Services industry higher today. As of noon trading, Brookdale Senior Living is up $0.53 (1.9%) to $28.87 on light volume Thus far, 342,645 shares of Brookdale Senior Living exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $28.25-$28.91 after having opened the day at $28.25 as compared to the previous trading day's close of $28.34.

Brookdale Senior Living Inc. owns and operates senior living communities in the United States. It operates in six segments: Retirement Centers, Assisted Living, Continuing Care Retirement Communities (CCRCs) Rental, CCRCs-Entry Fee, Innovative Senior Care, and Management Services. Brookdale Senior Living has a market cap of $3.4 billion and is part of the health care sector. Shares are up 9.3% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Brookdale Senior Living a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Brookdale Senior Living as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins. Get the full Brookdale Senior Living Ratings Report now.

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2. As of noon trading, DaVita HealthCare Partners ( DVA) is up $1.47 (1.2%) to $121.50 on average volume Thus far, 461,581 shares of DaVita HealthCare Partners exchanged hands as compared to its average daily volume of 868,000 shares. The stock has ranged in price between $119.78-$121.79 after having opened the day at $119.98 as compared to the previous trading day's close of $120.03.

DaVita HealthCare Partners Inc. provides kidney dialysis services for patients suffering from chronic kidney failure, or end stage renal disease (ESRD) in the United States. DaVita HealthCare Partners has a market cap of $11.4 billion and is part of the health care sector. The company has a P/E ratio of 21.7, above the S&P 500 P/E ratio of 17.7. Shares are up 8.2% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate DaVita HealthCare Partners a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates DaVita HealthCare Partners as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, increase in net income, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full DaVita HealthCare Partners Ratings Report now.

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1. As of noon trading, Abbott Laboratories ( ABT) is up $0.32 (1.0%) to $33.92 on light volume Thus far, 2.4 million shares of Abbott Laboratories exchanged hands as compared to its average daily volume of 13.7 million shares. The stock has ranged in price between $33.40-$33.93 after having opened the day at $33.51 as compared to the previous trading day's close of $33.60.

Abbott Laboratories engages in the discovery, development, manufacture, and sale of health care products worldwide. Abbott Laboratories has a market cap of $53.1 billion and is part of the health care sector. The company has a P/E ratio of 9.1, below the S&P 500 P/E ratio of 17.7. Shares are up 3.2% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Abbott Laboratories a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Abbott Laboratories as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share. Get the full Abbott Laboratories Ratings Report now.

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If you are interested in one of these 3 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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