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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