5 Stocks Pulling The Health Services Industry Downward

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%. 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%. Top gainers within the industry include HCA Holdings ( HCA), up 1.4%, Aetna ( AET), up 0.7% and UnitedHealth Group ( UNH), up 0.7%.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. PerkinElmer ( PKI) is one of the companies pushing the Health Services industry lower today. As of noon trading, PerkinElmer is down $0.85 (-2.5%) to $33.17 on heavy volume Thus far, 846,346 shares of PerkinElmer exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $32.90-$34.22 after having opened the day at $34.08 as compared to the previous trading day's close of $34.02.

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 $4.0 billion and is part of the health care sector. The company has a P/E ratio of 58.4, above the S&P 500 P/E ratio of 17.7. Shares are up 8.1% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate PerkinElmer a buy, no analysts rate it a sell, and 3 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. Get the full PerkinElmer Ratings Report now.

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4. As of noon trading, Waters Corporation ( WAT) is down $1.08 (-1.2%) to $92.18 on light volume Thus far, 148,663 shares of Waters Corporation exchanged hands as compared to its average daily volume of 431,200 shares. The stock has ranged in price between $92.10-$93.50 after having opened the day at $93.23 as compared to the previous trading day's close of $93.26.

Waters Corporation operates as an analytical instrument manufacturer in the United States and internationally. Waters Corporation has a market cap of $8.1 billion and is part of the technology sector. Currently there are 7 analysts that rate Waters Corporation a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Waters Corporation as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, expanding profit margins 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. Get the full Waters Corporation Ratings Report now.

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3. As of noon trading, ResMed ( RMD) is down $0.65 (-1.5%) to $43.51 on average volume Thus far, 391,718 shares of ResMed exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $43.44-$44.37 after having opened the day at $44.31 as compared to the previous trading day's close of $44.16.

ResMed Inc., through its subsidiaries, engages in the development, manufacture, and distribution of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders. ResMed has a market cap of $6.4 billion and is part of the health care sector. The company has a P/E ratio of 22.6, above the S&P 500 P/E ratio of 17.7. Shares are up 6.7% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate ResMed a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates ResMed 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full ResMed Ratings Report now.

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2. As of noon trading, CareFusion ( CFN) is down $0.26 (-0.8%) to $34.42 on average volume Thus far, 707,804 shares of CareFusion exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $34.29-$34.94 after having opened the day at $34.77 as compared to the previous trading day's close of $34.68.

CareFusion Corporation provides various healthcare products and services in the United States and internationally. It operates in two segments, Medical Systems and Procedural Solutions. CareFusion has a market cap of $7.6 billion and is part of the health care sector. Shares are up 19.6% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate CareFusion a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates CareFusion 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, increase 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. Get the full CareFusion Ratings Report now.

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1. As of noon trading, St Jude Medical ( STJ) is down $0.56 (-1.3%) to $41.80 on light volume Thus far, 675,547 shares of St Jude Medical exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $41.73-$42.55 after having opened the day at $42.50 as compared to the previous trading day's close of $42.36.

St. Jude Medical, Inc. develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. It operates in two divisions, Cardiovascular and Ablation Technologies, and Implantable Electronic Systems. St Jude Medical has a market cap of $11.9 billion and is part of the health care sector. The company has a P/E ratio of 17.6, below the S&P 500 P/E ratio of 17.7. Shares are up 15.7% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate St Jude Medical a buy, no analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates St Jude Medical as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full St Jude Medical 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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