Edwards Life Sciences Corp. (EW): 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.

Edwards Life ( EW) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Edwards Life fell $2.55 (-3.1%) to $78.66 on heavy volume. Throughout the day, 2.6 million shares of Edwards Life exchanged hands as compared to its average daily volume of 954,300 shares. The stock ranged in price between $78.10-$81.37 after having opened the day at $81.14 as compared to the previous trading day's close of $81.21. Other companies within the Health Services industry that declined today were: Rockwell Medical ( RMTI), down 15.9%, Spherix ( SPEX), down 8%, CombiMatrix Corporation ( CBMX), down 5.9%, and Hansen Medical ( HNSN), down 5.4%.
  • 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.

Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. Edwards Life has a market cap of $9.38 billion and is part of the health care sector. The company has a P/E ratio of 33.1, above the S&P 500 P/E ratio of 17.7. Shares are down 9.9% year to date as of the close of trading on Monday. Currently there are nine analysts that rate Edwards Life a buy, two analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Edwards Life 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, notable return on equity, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, SunLink Health Systems ( SSY), up 6.7%, LCA-Vision ( LCAV), up 6.3%, Retractable Technologies ( RVP), up 6.3%, and Biolase ( BIOL), up 5.9%, were all gainers within the health services industry with HCA Holdings ( HCA) 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).

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.