3 Stocks Driving The Health Services 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 78 points (-0.5%) at 14,583 as of Wednesday, April 3, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 720 issues advancing vs. 2,193 declining with 115 unchanged.

The Health Services industry currently sits down 1.0% versus the S&P 500, which is down 0.7%. Top gainers within the industry include Intuitive Surgical ( ISRG), up 2.5%, St Jude Medical ( STJ), up 1.0%, Aetna ( AET), up 0.6% and Agilent Technologies ( A), up 0.6%. On the negative front, top decliners within the industry include Tenet Healthcare ( THC), down 5.9%, HCA Holdings ( HCA), down 4.7%, Health Management Associates ( HMA), down 4.0%, Community Health Systems ( CYH), down 4.1% and Universal Health Services ( UHS), down 2.4%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry higher today:

3. Fresenius Medical Care AG & Co. KGaA ( FMS) is one of the companies pushing the Health Services industry higher today. As of noon trading, Fresenius Medical Care AG & Co. KGaA is up $0.37 (1.1%) to $34.77 on average volume Thus far, 89,214 shares of Fresenius Medical Care AG & Co. KGaA exchanged hands as compared to its average daily volume of 218,900 shares. The stock has ranged in price between $34.66-$34.94 after having opened the day at $34.81 as compared to the previous trading day's close of $34.40.

Fresenius Medical Care AG & Co. KGaA, a kidney dialysis company, operates in the field of dialysis care and dialysis products for the treatment of end-stage renal disease. Fresenius Medical Care AG & Co. KGaA has a market cap of $10.2 billion and is part of the health care sector. The company has a P/E ratio of 17.5, below the S&P 500 P/E ratio of 17.7. Shares are up 0.3% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Fresenius Medical Care AG & Co. KGaA a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Fresenius Medical Care AG & Co. KGaA as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Fresenius Medical Care AG & Co. KGaA Ratings Report now.

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2. As of noon trading, Quest Diagnostics ( DGX) is up $0.58 (1.0%) to $57.38 on average volume Thus far, 532,920 shares of Quest Diagnostics exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $56.72-$57.51 after having opened the day at $57.00 as compared to the previous trading day's close of $56.80.

Quest Diagnostics Incorporated provides diagnostic testing information services in the United States and internationally. The company operates in two businesses, Diagnostic Information Services and Diagnostic Solutions. Quest Diagnostics has a market cap of $8.9 billion and is part of the health care sector. The company has a P/E ratio of 14.4, below the S&P 500 P/E ratio of 17.7. Shares are down 2.5% year to date as of the close of trading on Tuesday. Currently there is 1 analyst that rates Quest Diagnostics a buy, 2 analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Quest Diagnostics as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, 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 sub par growth in net income. Get the full Quest Diagnostics Ratings Report now.

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1. As of noon trading, Humana ( HUM) is up $0.41 (0.5%) to $79.52 on heavy volume Thus far, 2.2 million shares of Humana exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $78.83-$81.41 after having opened the day at $79.18 as compared to the previous trading day's close of $79.11.

Humana Inc. operates as a health care company that offers a range of insurance products and health and wellness services that incorporate an integrated approach to lifelong well-being. The company operates in three segments: Retail, Employer Group, and Health and Well-Being Services. Humana has a market cap of $11.9 billion and is part of the health care sector. The company has a P/E ratio of 10.0, below the S&P 500 P/E ratio of 17.7. Shares are up 15.3% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate Humana a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Humana 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 and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Humana Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you are interested in one of these 3 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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