TFX, STJ, HCA And BAX, Pushing Health Services Industry Downward

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. 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. Top gainers within the industry include Aetna ( AET), up 4.1%, Covidien ( COV), up 1.9% and Express Scripts ( ESRX), up 1.3%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. Teleflex ( TFX) is one of the companies pushing the Health Services industry lower today. As of noon trading, Teleflex is down $3.02 (-3.7%) to $79.22 on heavy volume Thus far, 398,005 shares of Teleflex exchanged hands as compared to its average daily volume of 304,400 shares. The stock has ranged in price between $78.82-$82.02 after having opened the day at $82.02 as compared to the previous trading day's close of $82.24.

Teleflex Incorporated provides medical technology products worldwide. Teleflex has a market cap of $3.4 billion and is part of the health care sector. Shares are up 15.4% year to date as of the close of trading on Monday.

TheStreet Ratings rates Teleflex as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Teleflex Ratings Report now.

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3. As of noon trading, St Jude Medical ( STJ) is down $0.33 (-0.8%) to $41.35 on light volume Thus far, 565,676 shares of St Jude Medical exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $40.96-$41.65 after having opened the day at $41.56 as compared to the previous trading day's close of $41.68.

St. Jude Medical, Inc. develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. It operates in two divisions, Cardiovascular and Ablation Technologies, and Implantable Electronic Systems. St Jude Medical has a market cap of $11.7 billion and is part of the health care sector. The company has a P/E ratio of 16.9, below the S&P 500 P/E ratio of 17.7. Shares are up 13.4% year to date as of the close of trading on Monday.

TheStreet Ratings rates St Jude Medical as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity, attractive valuation levels, increase in stock price during the past year and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full St Jude Medical Ratings Report now.

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2. As of noon trading, HCA Holdings ( HCA) is down $0.26 (-0.6%) to $40.11 on light volume Thus far, 1.7 million shares of HCA Holdings exchanged hands as compared to its average daily volume of 4.6 million shares. The stock has ranged in price between $39.75-$40.85 after having opened the day at $40.26 as compared to the previous trading day's close of $40.37.

HCA Holdings, Inc., through its subsidiaries, provides health care services in the United States. HCA Holdings has a market cap of $16.9 billion and is part of the health care sector. The company has a P/E ratio of 10.9, below the S&P 500 P/E ratio of 17.7. Shares are up 26.8% year to date as of the close of trading on Monday.

TheStreet Ratings rates HCA Holdings 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, poor profit margins and weak operating cash flow. Get the full HCA Holdings Ratings Report now.

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1. As of noon trading, Baxter International ( BAX) is down $0.96 (-1.4%) to $69.60 on average volume Thus far, 1.2 million shares of Baxter International exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $69.13-$70.49 after having opened the day at $70.46 as compared to the previous trading day's close of $70.56.

Baxter International Inc., through its subsidiaries, develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. Baxter International has a market cap of $37.5 billion and is part of the health care sector. The company has a P/E ratio of 16.4, below the S&P 500 P/E ratio of 17.7. Shares are up 4.2% year to date as of the close of trading on Monday.

TheStreet Ratings rates Baxter International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Baxter International 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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