3 Stocks Advancing 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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 4 points (0.0%) at 14,823 as of Tuesday, April 30, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,672 issues advancing vs. 1,218 declining with 158 unchanged.

The Health Services industry currently sits up 0.3% versus the S&P 500, which is unchanged. Top gainers within the industry include Aetna ( AET), up 4.1%, Covidien ( COV), up 1.9% and Express Scripts ( ESRX), up 1.3%. On the negative front, top decliners within the industry include Smith & Nephew ( SNN), down 1.97, WellPoint ( WLP), down 0.69 and UnitedHealth Group ( UNH), down 0.76.

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

3. Grifols ( GRFS) is one of the companies pushing the Health Services industry higher today. As of noon trading, Grifols is up $0.20 (0.66) to $30.78 on average volume Thus far, 164,155 shares of Grifols exchanged hands as compared to its average daily volume of 349,300 shares. The stock has ranged in price between $30.55-$31.34 after having opened the day at $30.82 as compared to the previous trading day's close of $30.58.

Grifols, S.A., a specialty biopharmaceutical company, develops, manufactures, and distributes a range of plasma derivative products primarily in the European Union, Spain, the United States, and Canada. Grifols has a market cap of $16.5 billion and is part of the health care sector. Shares are up 16.4% year to date as of the close of trading on Monday.

TheStreet Ratings rates Grifols as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Get the full Grifols Ratings Report now.

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2. As of noon trading, Heartware International ( HTWR) is up $8.89 (10.41) to $94.31 on heavy volume Thus far, 1.0 million shares of Heartware International exchanged hands as compared to its average daily volume of 201,300 shares. The stock has ranged in price between $92.52-$95.14 after having opened the day at $93.71 as compared to the previous trading day's close of $85.42.

HeartWare International, Inc., a medical device company, engages in developing and manufacturing miniaturized implantable heart pumps or ventricular assist devices (VAD) for the treatment of advanced heart failure in the United States and internationally. Heartware International has a market cap of $1.4 billion and is part of the health care sector. Shares are up 1.7% year to date as of the close of trading on Monday.

TheStreet Ratings rates Heartware International as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally high debt management risk. Get the full Heartware International Ratings Report now.

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1. As of noon trading, Coventry Health Care ( CVH) is up $0.89 (1.82) to $49.79 on average volume Thus far, 393,913 shares of Coventry Health Care exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $49.05-$49.86 after having opened the day at $49.05 as compared to the previous trading day's close of $48.90.

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 $6.6 billion and is part of the health care sector. The company has a P/E ratio of 14.0, below the S&P 500 P/E ratio of 17.7. Shares are up 9.8% year to date as of the close of trading on Monday.

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. Get the full Coventry Health Care Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you are interested in one of these 3 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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