5 Stocks Pulling The Health Care Sector 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 22 points (-0.2%) at 14,556 as of Monday, April 1, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 762 issues advancing vs. 2,184 declining with 121 unchanged.

The Health Care sector currently sits down 1.1% versus the S&P 500, which is down 0.6%. On the negative front, top decliners within the sector include Vertex Pharmaceuticals ( VRTX), down 1.6%, Thermo Fisher Scientific ( TMO), down 1.3%, Gilead ( GILD), down 1.1%, Aetna ( AET), down 1.2% and Zimmer Holdings ( ZMH), down 0.9%. A company within the sector that increased today was Celgene Corporation ( CELG), up 1.0%.

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

5. Cigna ( CI) is one of the companies pushing the Health Care sector lower today. As of noon trading, Cigna is down $0.46 (-0.7%) to $61.91 on light volume Thus far, 725,756 shares of Cigna exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $61.88-$62.58 after having opened the day at $62.34 as compared to the previous trading day's close of $62.37.

Cigna Corporation, a health services organization, provides insurance and related products and services in the United States and internationally. Cigna has a market cap of $17.8 billion and is part of the health services industry. The company has a P/E ratio of 11.1, below the S&P 500 P/E ratio of 17.7. Shares are up 16.7% year to date as of the close of trading on Thursday. Currently there are 9 analysts that rate Cigna a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Cigna as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Cigna Ratings Report now.

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4. As of noon trading, St Jude Medical ( STJ) is down $0.46 (-1.1%) to $39.98 on average volume Thus far, 1.4 million 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 $39.92-$40.86 after having opened the day at $40.50 as compared to the previous trading day's close of $40.44.

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 $11.4 billion and is part of the health services industry. The company has a P/E ratio of 16.9, below the S&P 500 P/E ratio of 17.7. Shares are up 11.9% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate St Jude Medical a buy, no analysts rate it a sell, and 13 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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3. As of noon trading, Agilent Technologies ( A) is down $0.76 (-1.8%) to $41.21 on light volume Thus far, 887,292 shares of Agilent Technologies exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $41.13-$41.98 after having opened the day at $41.83 as compared to the previous trading day's close of $41.97.

Agilent Technologies, Inc. provides bio-analytical and electronic measurement solutions and services to the life sciences, chemical analysis, diagnostics and genomics, communications, and electronics industries worldwide. Agilent Technologies has a market cap of $14.6 billion and is part of the health services industry. The company has a P/E ratio of 13.4, below the S&P 500 P/E ratio of 17.7. Shares are up 2.5% year to date as of the close of trading on Thursday. Currently there are 14 analysts that rate Agilent Technologies a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Agilent Technologies 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, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Agilent Technologies Ratings Report now.

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2. As of noon trading, Covidien ( COV) is down $0.40 (-0.6%) to $67.44 on light volume Thus far, 510,495 shares of Covidien exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $67.38-$67.93 after having opened the day at $67.71 as compared to the previous trading day's close of $67.84.

Covidien plc develops, manufactures, and sells healthcare products for use in clinical and home settings worldwide. Covidien has a market cap of $32.0 billion and is part of the health services industry. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are up 17.5% year to date as of the close of trading on Thursday. Currently there are 14 analysts that rate Covidien a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Covidien as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, attractive valuation levels, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Covidien Ratings Report now.

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1. As of noon trading, Eli Lilly and Company ( LLY) is down $0.39 (-0.7%) to $56.40 on light volume Thus far, 1.9 million shares of Eli Lilly and Company exchanged hands as compared to its average daily volume of 6.2 million shares. The stock has ranged in price between $56.22-$56.80 after having opened the day at $56.66 as compared to the previous trading day's close of $56.79.

Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. Eli Lilly and Company has a market cap of $64.2 billion and is part of the drugs industry. The company has a P/E ratio of 15.5, below the S&P 500 P/E ratio of 17.7. Shares are up 15.1% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Eli Lilly and Company a buy, 4 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Eli Lilly and Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Eli Lilly and Company 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 care sector could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health care sector 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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