Universal Health Services Inc. (UHS): 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

Universal Health Services ( UHS) 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, Universal Health Services rose $2.27 (3.6%) to $64.78 on heavy volume. Throughout the day, 1,541,461 shares of Universal Health Services exchanged hands as compared to its average daily volume of 863,900 shares. The stock ranged in a price between $63.93-$65.52 after having opened the day at $64.73 as compared to the previous trading day's close of $62.51. Other companies within the Health Services industry that increased today were: MGC Diagnostics ( MGCD), up 13.2%, Urologix ( ULGX), up 11.1%, Oculus Innovative ( OCLS), up 11.0% and InspireMD ( NSPR), up 9.8%.
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Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. Universal Health Services has a market cap of $5.7 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 29.3% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Universal Health Services as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, good cash flow from operations, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Merit Medical Systems ( MMSI), down 12.2%, PerkinElmer ( PKI), down 11.9%, Rochester Medical Corporation ( ROCM), down 7.9% and Arrhythmia Research Technology ( HRT), down 6.8% , were all laggards within the health services industry with WellPoint ( WLP) 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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