WellPoint Inc (WLP): Today's Featured Health Services Mover

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.

WellPoint ( WLP) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day down 0.1%. By the end of trading, WellPoint rose 76 cents (1.1%) to $68.48 on average volume. Throughout the day, 1.7 million shares of WellPoint exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $67.75-$68.93 after having opened the day at $67.89 as compared to the previous trading day's close of $67.72. Other companies within the Health Services industry that increased today were: Unilife Corporation ( UNIS), up 15.6%, Staar Surgical ( STAA), up 10.9%, Biolase ( BIOL), up 8.9%, and Kips Bay Medical ( KIPS), up 8.2%.
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WellPoint, Inc., a health benefits company, through its subsidiaries, offers network-based managed care plans to large and small employer, individual, Medicaid, and senior markets in the United States. The company operates through three segments: Commercial, Consumer, and Other. WellPoint has a market cap of $20.53 billion and is part of the health care sector. The company has a P/E ratio of 8.3, below the S&P 500 P/E ratio of 17.7. Shares are up 11.2% year to date as of the close of trading on Monday. Currently there are five analysts that rate WellPoint a buy, one analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates WellPoint as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, 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 has had somewhat disappointing return on equity.

On the negative front, BSD Medical Corporation ( BSDM), down 29.1%, Escalon Medical Corporation ( ESMC), down 12%, Spherix ( SPEX), down 6.6%, and Vision-Sciences Inc (DE ( VSCI), down 6.5%, were all laggards within the health services industry with St Jude Medical ( STJ) being today's health services industry laggard.

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).

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