4 Health Services Stocks Nudging The Industry Higher

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 68 points (-0.5%) at 14,443 as of Monday, March 25, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,111 issues advancing vs. 1,777 declining with 156 unchanged.

The Health Services industry currently sits up 0.2% versus the S&P 500, which is down 0.3%. Top gainers within the industry include HCA Holdings ( HCA), up 1.4%, Aetna ( AET), up 0.7% and UnitedHealth Group ( UNH), up 0.7%. On the negative front, top decliners within the industry include Vanguard Health Systems ( VHS), down 6.7%, Mettler-Toledo International ( MTD), down 2.4%, Edwards Life ( EW), down 1.2%, Boston Scientific ( BSX), down 1.1% and Thermo Fisher Scientific ( TMO), down 1.0%.

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

4. Health Management Associates ( HMA) is one of the companies pushing the Health Services industry higher today. As of noon trading, Health Management Associates is up $0.42 (3.4%) to $12.80 on average volume Thus far, 2.0 million shares of Health Management Associates exchanged hands as compared to its average daily volume of 4.2 million shares. The stock has ranged in price between $12.39-$12.93 after having opened the day at $12.39 as compared to the previous trading day's close of $12.38.

Health Management Associates, Inc., through its subsidiaries, engages in the operation of general acute care hospitals and other health care facilities in non-urban communities in the United States. Health Management Associates has a market cap of $3.2 billion and is part of the health care sector. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 31.9% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Health Management Associates a buy, 2 analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Health Management Associates as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Health Management Associates Ratings Report now.

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3. As of noon trading, Community Health Systems ( CYH) is up $0.86 (1.9%) to $45.80 on average volume Thus far, 552,249 shares of Community Health Systems exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $45.05-$46.03 after having opened the day at $45.17 as compared to the previous trading day's close of $44.94.

Community Health Systems, Inc., together with its subsidiaries, provides general and specialized hospital healthcare services to patients in the United States. Community Health Systems has a market cap of $4.1 billion and is part of the health care sector. The company has a P/E ratio of 15.2, below the S&P 500 P/E ratio of 17.7. Shares are up 44.4% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Community Health Systems a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Community Health Systems 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 attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Community Health Systems Ratings Report now.

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2. As of noon trading, Hologic ( HOLX) is up $0.21 (0.9%) to $22.55 on average volume Thus far, 1.6 million shares of Hologic exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $22.39-$22.81 after having opened the day at $22.49 as compared to the previous trading day's close of $22.34.

Hologic, Inc. develops, manufactures, and supplies diagnostics, medical imaging systems, and surgical products for the healthcare needs of women. Hologic has a market cap of $6.0 billion and is part of the health care sector. Shares are up 10.8% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Hologic a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Hologic as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity. Get the full Hologic Ratings Report now.

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1. As of noon trading, Tenet Healthcare ( THC) is up $1.64 (3.6%) to $47.02 on average volume Thus far, 874,191 shares of Tenet Healthcare exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $45.54-$47.05 after having opened the day at $45.67 as compared to the previous trading day's close of $45.38.

Tenet Healthcare Corporation, an investor-owned health care services company, owns and operates acute care hospitals, ambulatory surgery centers, diagnostic imaging centers, urgent care centers, and related health care facilities in the United States. Tenet Healthcare has a market cap of $4.7 billion and is part of the health care sector. Currently there are 6 analysts that rate Tenet Healthcare a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Tenet Healthcare as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins. Get the full Tenet Healthcare Ratings Report now.

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If you are interested in one of these 4 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.

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