PerkinElmer Inc (PKI): 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.

PerkinElmer ( PKI) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day down 0.1%. By the end of trading, PerkinElmer fell 40 cents (-1.1%) to $35.46 on average volume. Throughout the day, 879,989 shares of PerkinElmer exchanged hands as compared to its average daily volume of one million shares. The stock ranged in price between $35.37-$35.86 after having opened the day at $35.78 as compared to the previous trading day's close of $35.86. Other companies within the Health Services industry that declined today were: Retractable Technologies ( RVP), down 15.1%, Lakeland Industries ( LAKE), down 14.1%, Emeritus Corporation ( ESC), down 9.9%, and Amedisys ( AMED), down 9.7%.
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PerkinElmer, Inc. provides products, services, and solutions to the diagnostics, research, environmental, industrial, and laboratory services markets worldwide. The company operates in two segments, Human Health and Environmental Health. PerkinElmer has a market cap of $4.04 billion and is part of the health care sector. The company has a P/E ratio of 59.3, above the S&P 500 P/E ratio of 17.7. Shares are up 13% year to date as of the close of trading on Monday. Currently there are eight analysts that rate PerkinElmer a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates PerkinElmer as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, SunLink Health Systems ( SSY), up 35%, Allied Healthcare Products ( AHPI), up 19.8%, DexCom ( DXCM), up 9.1%, and Alphatec Holdings ( ATEC), up 8%, were all gainers within the health services industry with WellPoint ( WLP) 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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