4 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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 62 points (0.4%) at 14,518 as of Thursday, March 14, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,808 issues advancing vs. 1,087 declining with 143 unchanged.

The Health Services industry currently sits up 0.3% versus the S&P 500, which is up 0.5%. A company within the industry that fell today was Edwards Life ( EW), up 1.2%. Top gainers within the industry include Health Management Associates ( HMA), up 3.2%, Community Health Systems ( CYH), up 2.4%, Smith & Nephew ( SNN), up 2.5%, Fresenius Medical Care Corporation ( FMS), up 1.1% and DaVita HealthCare Partners ( DVA), up 0.9%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. Centene Corporation ( CNC) is one of the companies pushing the Health Services industry lower today. As of noon trading, Centene Corporation is down $2.07 (-4.4%) to $44.95 on heavy volume Thus far, 536,850 shares of Centene Corporation exchanged hands as compared to its average daily volume of 630,800 shares. The stock has ranged in price between $44.60-$46.13 after having opened the day at $46.05 as compared to the previous trading day's close of $47.02.

Centene Corporation provides multi-line healthcare programs and services in the United States. It operates in two segments, Medicaid Managed Care and Specialty Services. Centene Corporation has a market cap of $2.4 billion and is part of the health care sector. The company has a P/E ratio of 1550.0, above the S&P 500 P/E ratio of 17.7. Shares are up 14.7% year to date as of the close of trading on Wednesday. Currently there are 7 analysts that rate Centene Corporation a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Centene Corporation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full Centene Corporation Ratings Report now.

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

3. As of noon trading, Zimmer Holdings ( ZMH) is down $1.03 (-1.4%) to $75.03 on heavy volume Thus far, 1.4 million shares of Zimmer Holdings exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $73.66-$75.71 after having opened the day at $75.50 as compared to the previous trading day's close of $76.06.

Zimmer Holdings, Inc., through its subsidiaries, engages in the design, development, manufacture, and marketing of orthopedic reconstructive devices, spinal and trauma devices, biologics, dental implants, and related surgical products in the Americas, Europe, and the Asia Pacific. Zimmer Holdings has a market cap of $12.9 billion and is part of the health care sector. The company has a P/E ratio of 17.8, equal to the S&P 500 P/E ratio of 17.7. Shares are up 14.1% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Zimmer Holdings a buy, no analysts rate it a sell, and 15 rate it a hold.

TheStreet Ratings rates Zimmer Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Zimmer Holdings Ratings Report now.

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

2. As of noon trading, Aetna ( AET) is down $0.30 (-0.6%) to $51.16 on light volume Thus far, 1.1 million shares of Aetna exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $50.94-$51.73 after having opened the day at $51.60 as compared to the previous trading day's close of $51.46.

Aetna Inc. operates as a diversified health care benefits company in the United States. The company operates in three segments: Health Care, Group Insurance, and Large Case Pensions. Aetna has a market cap of $16.8 billion and is part of the health care sector. The company has a P/E ratio of 10.7, below the S&P 500 P/E ratio of 17.7. Shares are up 11.1% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Aetna a buy, no analysts rate it a sell, and 6 rate it a hold.

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

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

1. As of noon trading, Express Scripts ( ESRX) is down $1.04 (-1.7%) to $58.50 on average volume Thus far, 4.1 million shares of Express Scripts exchanged hands as compared to its average daily volume of 5.8 million shares. The stock has ranged in price between $58.09-$59.84 after having opened the day at $59.68 as compared to the previous trading day's close of $59.54.

Express Scripts Holding Company provides a range of pharmacy benefit management (PBM) services in North America. Express Scripts has a market cap of $48.6 billion and is part of the health care sector. The company has a P/E ratio of 33.2, above the S&P 500 P/E ratio of 17.7. Shares are up 10.0% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Express Scripts a buy, no analysts rate it a sell, and 4 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, increase in stock price during the past year, reasonable valuation levels, increase in net income 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 Express Scripts Ratings Report now.

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

If you are interested in one of these 5 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.
null

If you liked this article you might like

Why Centene Is One of Jim Cramer's 'Absolute Favorite Stocks'

Why Centene Is One of Jim Cramer's 'Absolute Favorite Stocks'

Centene, LabCorp Among Healthcare Stock Gainers

Centene, LabCorp Among Healthcare Stock Gainers

A Regular Winning Trade Becomes Roadkill in Market Meltdown

A Regular Winning Trade Becomes Roadkill in Market Meltdown

It's a Flash Sale!: Cramer's 'Mad Money' Recap (Wednesday 1/31/18)

It's a Flash Sale!: Cramer's 'Mad Money' Recap (Wednesday 1/31/18)

Jim Cramer: Breaking Down the State of the Union in Rhetoric Per Share

Jim Cramer: Breaking Down the State of the Union in Rhetoric Per Share