Brookdale Senior Living Inc. (BKD): 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.

Brookdale Senior Living ( BKD) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Brookdale Senior Living fell 50 cents (-1.7%) to $28.71 on average volume. Throughout the day, 1.5 million shares of Brookdale Senior Living exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in price between $28.54-$29.12 after having opened the day at $29.12 as compared to the previous trading day's close of $29.21. Other companies within the Health Services industry that declined today were: Synergetics USA ( SURG), down 29.2%, Allied Healthcare Products ( AHPI), down 12.5%, AdCare Health Systems ( ADK), down 10.3%, and Navidea Biopharmaceuticals ( NAVB), down 7.3%.
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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 $3.63 billion and is part of the health care sector. Shares are up 15.4% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Brookdale Senior Living a buy, no analysts rate it a sell, and two 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.

On the positive front, GenMark Diagnostics ( GNMK), up 10.1%, Trius Therapeutics ( TSRX), up 7.9%, SunLink Health Systems ( SSY), up 7.4%, and Kips Bay Medical ( KIPS), up 6.7%, were all gainers within the health services industry with Becton Dickinson ( BDX) 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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