4 Stocks Dragging 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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 161 points (1.1%) at 14,992 as of Friday, May 3, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,292 issues advancing vs. 653 declining with 100 unchanged.

The Health Services industry currently sits up 0.9% versus the S&P 500, which is up 1.2%. On the negative front, top decliners within the industry include Select Medical Holdings Corporation ( SEM), down 7.19, Edwards Life ( EW), down 1.06 and Humana ( HUM), down 1.04. Top gainers within the industry include Mettler-Toledo International ( MTD), up 8.1%, Tenet Healthcare ( THC), up 2.6%, Varian Medical Systems ( VAR), up 2.4%, CareFusion ( CFN), up 2.1% and Boston Scientific ( BSX), up 1.5%.

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

4. Chemed Corporation ( CHE) is one of the companies pushing the Health Services industry lower today. As of noon trading, Chemed Corporation is down $14.40 (-17.6%) to $67.39 on heavy volume Thus far, 2.3 million shares of Chemed Corporation exchanged hands as compared to its average daily volume of 148,600 shares. The stock has ranged in price between $61.76-$68.00 after having opened the day at $65.14 as compared to the previous trading day's close of $81.79.

Chemed Corporation, through its subsidiaries, operates in the healthcare, and repair and maintenance fields in the United States. The company operates in two segments, Vitas and Roto-Rooter. Chemed Corporation has a market cap of $1.5 billion and is part of the health care sector. The company has a P/E ratio of 17.0, below the S&P 500 P/E ratio of 17.7. Shares are up 19.2% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Chemed Corporation 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, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Chemed Corporation Ratings Report now.

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3. As of noon trading, Thoratec Corporation ( THOR) is down $3.73 (-10.2%) to $32.79 on heavy volume Thus far, 3.3 million shares of Thoratec Corporation exchanged hands as compared to its average daily volume of 559,100 shares. The stock has ranged in price between $31.60-$35.36 after having opened the day at $34.79 as compared to the previous trading day's close of $36.52.

Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. Thoratec Corporation has a market cap of $2.1 billion and is part of the health care sector. The company has a P/E ratio of 38.1, above the S&P 500 P/E ratio of 17.7. Shares are down 4.7% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Thoratec Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins 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 Thoratec Corporation Ratings Report now.

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2. As of noon trading, Health Management Associates ( HMA) is down $0.48 (-4.3%) to $10.75 on heavy volume Thus far, 6.7 million shares of Health Management Associates exchanged hands as compared to its average daily volume of 4.3 million shares. The stock has ranged in price between $10.42-$11.06 after having opened the day at $10.85 as compared to the previous trading day's close of $11.23.

Health Management Associates, Inc., through its subsidiaries, engages in the operation of general acute care hospitals and other health care facilities in non-urban communities in the United States. Health Management Associates has a market cap of $2.8 billion and is part of the health care sector. The company has a P/E ratio of 16.3, below the S&P 500 P/E ratio of 17.7. Shares are up 20.5% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Health Management Associates 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, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Health Management Associates Ratings Report now.

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1. As of noon trading, Cigna ( CI) is down $0.58 (-0.8%) to $67.49 on average volume Thus far, 1.3 million shares of Cigna exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $66.92-$68.49 after having opened the day at $68.43 as compared to the previous trading day's close of $68.07.

Cigna Corporation, a health services organization, provides insurance and related products and services in the United States and internationally. Cigna has a market cap of $18.7 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 27.3% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Cigna as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Cigna Ratings Report now.

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If you are interested in one of these 5 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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