3 Stocks Underperforming Today In The Health Services Industry

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 72 points (0.5%) at 14,749 as of Thursday, April 25, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,049 issues advancing vs. 833 declining with 158 unchanged.

The Health Services industry currently sits up 0.5% versus the S&P 500, which is up 0.7%. A company within the industry that fell today was Aetna ( AET), up 0.90. Top gainers within the industry include Icon ( ICLR), up 9.4%, Zimmer Holdings ( ZMH), up 1.6%, Stryker Corporation ( SYK), up 1.5%, Becton Dickinson ( BDX), up 1.4% and Edwards Life ( EW), up 1.4%.

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

3. Ironwood Pharmaceuticals ( IRWD) is one of the companies pushing the Health Services industry lower today. As of noon trading, Ironwood Pharmaceuticals is down $0.89 (-5.5%) to $15.41 on heavy volume Thus far, 1.0 million shares of Ironwood Pharmaceuticals exchanged hands as compared to its average daily volume of 792,600 shares. The stock has ranged in price between $15.25-$16.32 after having opened the day at $16.28 as compared to the previous trading day's close of $16.30.

Ironwood Pharmaceuticals, Inc., an entrepreneurial pharmaceutical company, discovers, develops, and commercializes human therapeutic products. Ironwood Pharmaceuticals has a market cap of $1.4 billion and is part of the health care sector. Shares are up 51.4% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Ironwood Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and weak operating cash flow. Get the full Ironwood Pharmaceuticals Ratings Report now.

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2. As of noon trading, Varian Medical Systems ( VAR) is down $4.82 (-7.0%) to $63.53 on heavy volume Thus far, 2.3 million shares of Varian Medical Systems exchanged hands as compared to its average daily volume of 722,800 shares. The stock has ranged in price between $63.25-$65.90 after having opened the day at $65.00 as compared to the previous trading day's close of $68.35.

Varian Medical Systems, Inc. designs, manufactures, sells, and services medical devices and software for treating cancer with radiotherapy, radiosurgery, proton therapy, and brachytherapy worldwide. Varian Medical Systems has a market cap of $7.5 billion and is part of the health care sector. The company has a P/E ratio of 17.9, above the S&P 500 P/E ratio of 17.7. Shares are down 2.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Varian Medical Systems 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, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Varian Medical Systems Ratings Report now.

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1. As of noon trading, Thermo Fisher Scientific ( TMO) is down $0.59 (-0.7%) to $80.61 on average volume Thus far, 1.3 million shares of Thermo Fisher Scientific exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $80.39-$81.39 after having opened the day at $81.30 as compared to the previous trading day's close of $81.20.

Thermo Fisher Scientific Inc. provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacture, analysis, discovery, and diagnostics. Thermo Fisher Scientific has a market cap of $28.9 billion and is part of the health care sector. The company has a P/E ratio of 23.5, above the S&P 500 P/E ratio of 17.7. Shares are up 27.3% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Thermo Fisher Scientific as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Thermo Fisher Scientific Ratings Report now.

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If you are interested in one of these 5 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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