St Jude Medical Inc. (STJ): Today's Featured Health Services Laggard

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

St Jude Medical ( STJ) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.4%. By the end of trading, St Jude Medical fell $0.46 (-1.1%) to $41.22 on light volume. Throughout the day, 1,783,599 shares of St Jude Medical exchanged hands as compared to its average daily volume of 2,816,200 shares. The stock ranged in price between $40.96-$41.68 after having opened the day at $41.56 as compared to the previous trading day's close of $41.68. Other companies within the Health Services industry that declined today were: Uroplasty ( UPI), down 6.7%, Urologix ( ULGX), down 6.5%, TranS1 ( TSON), down 5.6% and Teleflex ( TFX), down 5.0%.
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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.

On the positive front, Heartware International ( HTWR), down 13.8%, Harvard Bioscience ( HBIO), down 7.8%, Hooper Holmes ( HH), down 7.5% and Invacare Corporation ( IVC), down 7.3% , were all gainers within the health services industry with Humana ( HUM) being today's featured health services industry leader.

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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