Medtronic Inc. (MDT): Today's Featured Health Services Winner

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

Medtronic ( MDT) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day up 0.7%. By the end of trading, Medtronic rose $0.71 (1.5%) to $48.81 on average volume. Throughout the day, 4,191,107 shares of Medtronic exchanged hands as compared to its average daily volume of 4,282,400 shares. The stock ranged in a price between $47.92-$48.83 after having opened the day at $48.02 as compared to the previous trading day's close of $48.10. Other companies within the Health Services industry that increased today were: ICU Medical ( ICUI), up 12.7%, Solta Medical ( SLTM), up 11.4%, Accuray ( ARAY), up 10.8% and DaVita HealthCare Partners ( DVA), up 10.1%.
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Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. Medtronic has a market cap of $48.4 billion and is part of the health care sector. The company has a P/E ratio of 14.5, below the S&P 500 P/E ratio of 17.7. Shares are up 17.3% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Medtronic a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Medtronic as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Oculus Innovative ( OCLS), down 16.0%, ERBA Diagnostics ( ERB), down 8.2%, CombiMatrix Corporation ( CBMX), down 7.8% and USMD Holdings ( USMD), down 5.7% , were all laggards within the health services industry with HCA Holdings ( HCA) being today's health services industry laggard.

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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