Edwards Life Sciences Corp. (EW): Today's Key Contributor To Industry Gains

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.

Edwards Life ( EW) 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, Edwards Life rose 98 cents (1.2%) to $84.80 on average volume. Throughout the day, 960,741 shares of Edwards Life exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $83.79-$84.84 after having opened the day at $83.79 as compared to the previous trading day's close of $83.82. Other companies within the Health Services industry that increased today were: American Shared Hospital ( AMS), up 9.6%, Urologix ( ULGX), up 7.9%, Hooper Holmes ( HH), up 7.2%, and Spectranetics Corporation ( SPNC), up 6.4%.
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Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. Edwards Life has a market cap of $9.43 billion and is part of the health care sector. The company has a P/E ratio of 33.5, above the S&P 500 P/E ratio of 17.7. Shares are down 7% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate Edwards Life a buy, two analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Edwards Life 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, notable return on equity, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Iridex Corporation ( IRIX), down 7.7%, MGC Diagnostics ( MGCD), down 7%, Retractable Technologies ( RVP), down 4%, and AtriCure ( ATRC), down 4%, were all laggards within the health services industry with Humana ( HUM) 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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