5 Stocks Pulling The 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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 62 points (-0.4%) at 14,778 as of Wednesday, May 1, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 958 issues advancing vs. 1,966 declining with 114 unchanged.

The Health Services industry currently sits down 0.78 versus the S&P 500, which is down 0.42. On the negative front, top decliners within the industry include Vanguard Health Systems ( VHS), down 7.59, Opko Health ( OPK), down 4.61, Mettler-Toledo International ( MTD), down 2.97, Mindray Medical International ( MR), down 1.85 and HCA Holdings ( HCA), down 1.28.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Zimmer Holdings ( ZMH) is one of the companies pushing the Health Services industry lower today. As of noon trading, Zimmer Holdings is down $0.59 (-0.8%) to $75.86 on light volume Thus far, 232,090 shares of Zimmer Holdings exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $75.75-$76.41 after having opened the day at $76.20 as compared to the previous trading day's close of $76.45.

Zimmer Holdings, Inc., through its subsidiaries, engages in the design, development, manufacture, and marketing of orthopedic reconstructive devices, spinal and trauma devices, biologics, dental implants, and related surgical products in the Americas, Europe, and the Asia Pacific. Zimmer Holdings has a market cap of $12.7 billion and is part of the health care sector. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are up 14.7% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Zimmer Holdings as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, 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 Zimmer Holdings 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.

4. As of noon trading, Edwards Life ( EW) is down $0.90 (-1.4%) to $62.89 on average volume Thus far, 856,796 shares of Edwards Life exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $62.38-$63.97 after having opened the day at $63.23 as compared to the previous trading day's close of $63.79.

Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. Edwards Life has a market cap of $7.3 billion and is part of the health care sector. The company has a P/E ratio of 24.1, above the S&P 500 P/E ratio of 17.7. Shares are down 29.3% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Edwards Life 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, notable return on equity, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Edwards Life 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.

3. As of noon trading, Tenet Healthcare ( THC) is down $0.83 (-1.8%) to $44.53 on average volume Thus far, 909,419 shares of Tenet Healthcare exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $44.07-$45.43 after having opened the day at $45.00 as compared to the previous trading day's close of $45.36.

Tenet Healthcare Corporation, an investor-owned health care services company, owns and operates acute care hospitals, ambulatory surgery centers, diagnostic imaging centers, urgent care centers, and related health care facilities in the United States. Tenet Healthcare has a market cap of $4.6 billion and is part of the health care sector. The company has a P/E ratio of 25.8, above the S&P 500 P/E ratio of 17.7. Shares are up 39.7% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Tenet Healthcare as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins. Get the full Tenet Healthcare 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.

2. As of noon trading, WellPoint ( WLP) is down $0.41 (-0.6%) to $72.51 on average volume Thus far, 896,923 shares of WellPoint exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $72.21-$73.53 after having opened the day at $72.76 as compared to the previous trading day's close of $72.92.

WellPoint, Inc., a health benefits company, through its subsidiaries, offers network-based managed care plans to large and small employer, individual, Medicaid, and senior markets in the United States. The company operates through three segments: Commercial, Consumer, and Other. WellPoint has a market cap of $21.9 billion and is part of the health care sector. The company has a P/E ratio of 8.5, below the S&P 500 P/E ratio of 17.7. Shares are up 19.7% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates WellPoint as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full WellPoint 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.

1. As of noon trading, UnitedHealth Group ( UNH) is down $0.33 (-0.6%) to $59.60 on light volume Thus far, 1.6 million shares of UnitedHealth Group exchanged hands as compared to its average daily volume of 6.4 million shares. The stock has ranged in price between $59.39-$60.44 after having opened the day at $59.96 as compared to the previous trading day's close of $59.93.

UnitedHealth Group Incorporated operates as a diversified health and well-being company in the United States. UnitedHealth Group has a market cap of $61.2 billion and is part of the health care sector. The company has a P/E ratio of 11.7, below the S&P 500 P/E ratio of 17.7. Shares are up 10.5% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates UnitedHealth Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full UnitedHealth Group 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 4 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.

null

More from Markets

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing