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 0.8%. By the end of trading, St Jude Medical rose 55 cents (1.3%) to $42.25 on light volume. Throughout the day, 1.4 million shares of St Jude Medical exchanged hands as compared to its average daily volume of 3.5 million shares. The stock ranged in a price between $41.70-$42.28 after having opened the day at $41.81 as compared to the previous trading day's close of $41.70. Other companies within the Health Services industry that increased today were: CombiMatrix Corporation ( CBMX), up 8.9%, TranS1 ( TSON), up 8%, American Shared Hospital ( AMS), up 7.6%, and Oculus Innovative ( OCLS), up 7%.
  • 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.

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 $11.78 billion and is part of the health care sector. The company has a P/E ratio of 17.4, below the S&P 500 P/E ratio of 17.7. Shares are up 15.4% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate St Jude Medical a buy, no analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates St Jude Medical as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, 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 lackluster performance in the stock itself.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Can Abbott Outperform Despite Alere?

Abbott Shares Dip on Mixed Fourth-Quarter Earnings

Abbott Labs: Diagnosing Growth in 2017

Abbott Laboratories Can Merge With St. Jude Medical: FTC

FTC Allows Abbott to Spin Off Units, Buy St. Jude Medical