Coventry Health Care Inc. (CVH): Today's Featured Health Services Winner

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

Coventry Health Care ( CVH) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day down 0.3%. By the end of trading, Coventry Health Care rose $0.60 (1.2%) to $49.25 on average volume. Throughout the day, 917,685 shares of Coventry Health Care exchanged hands as compared to its average daily volume of 1,059,800 shares. The stock ranged in a price between $49.02-$49.40 after having opened the day at $49.04 as compared to the previous trading day's close of $48.65. Other companies within the Health Services industry that increased today were: BSD Medical Corporation ( BSDM), up 7.3%, Medical Action Industries ( MDCI), up 7.2%, Hooper Holmes ( HH), up 6.2% and WellPoint ( WLP), up 5.8%.
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Coventry Health Care, Inc. operates as a managed healthcare company in the United States. The company's Commercial Products segment provides health plan commercial risk, commercial management services, Medicare Advantage Coordinated Care Plans (Medicare Advantage CCP), and Medicaid products. Coventry Health Care has a market cap of $6.5 billion and is part of the health care sector. The company has a P/E ratio of 13.8, below the S&P 500 P/E ratio of 17.7. Shares are up 8.5% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Coventry Health Care as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Spectranetics Corporation ( SPNC), down 10.0%, GenMark Diagnostics ( GNMK), down 6.8%, IsoRay ( ISR), down 6.4% and NeuroMetrix ( NURO), down 5.1% , were all laggards within the health services industry with Edwards Life ( EW) 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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