5 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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 5 points (0.0%) at 15,100 as of Thursday, May 9, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,176 issues advancing vs. 1,742 declining with 136 unchanged.

The Health Services industry currently sits down 0.21 versus the S&P 500, which is down 0.21. On the negative front, top decliners within the industry include Orthofix International N.V ( OFIX), down 16.31, HCA Holdings ( HCA), down 1.43, DaVita HealthCare Partners ( DVA), down 1.24 and UnitedHealth Group ( UNH), down 1.22.

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

5. DENTSPLY International ( XRAY) is one of the companies pushing the Health Services industry lower today. As of noon trading, DENTSPLY International is down $2.00 (-4.5%) to $42.20 on heavy volume Thus far, 1.7 million shares of DENTSPLY International exchanged hands as compared to its average daily volume of 663,700 shares. The stock has ranged in price between $40.50-$42.65 after having opened the day at $40.55 as compared to the previous trading day's close of $44.20.

DENTSPLY International Inc. designs, develops, manufactures, and markets a range of consumable dental products for the professional dental market worldwide. DENTSPLY International has a market cap of $6.2 billion and is part of the health care sector. The company has a P/E ratio of 19.9, above the S&P 500 P/E ratio of 17.7. Shares are up 11.6% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates DENTSPLY International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. 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 DENTSPLY International Ratings Report now.

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4. As of noon trading, Catamaran ( CTRX) is down $0.49 (-0.9%) to $51.94 on light volume Thus far, 444,891 shares of Catamaran exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $51.63-$52.73 after having opened the day at $52.61 as compared to the previous trading day's close of $52.43.

Catamaran Corporation provides pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefits management industry in North America. The company operates in two segments: PBM and HCIT. Catamaran has a market cap of $10.7 billion and is part of the health care sector. The company has a P/E ratio of 70.5, above the S&P 500 P/E ratio of 17.7. Shares are up 10.8% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Catamaran 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, compelling growth in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Catamaran Ratings Report now.

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3. As of noon trading, Cigna ( CI) is down $0.53 (-0.8%) to $67.85 on light volume Thus far, 447,792 shares of Cigna exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $67.72-$68.50 after having opened the day at $68.29 as compared to the previous trading day's close of $68.38.

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 $19.1 billion and is part of the health care sector. The company has a P/E ratio of 14.8, below the S&P 500 P/E ratio of 17.7. Shares are up 27.9% year to date as of the close of trading on Wednesday.

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 and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Cigna Ratings Report now.

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2. As of noon trading, Thermo Fisher Scientific ( TMO) is down $0.41 (-0.5%) to $83.70 on light volume Thus far, 441,836 shares of Thermo Fisher Scientific exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $83.35-$84.16 after having opened the day at $84.04 as compared to the previous trading day's close of $84.11.

Thermo Fisher Scientific Inc. provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacture, analysis, discovery, and diagnostics. Thermo Fisher Scientific has a market cap of $30.1 billion and is part of the health care sector. The company has a P/E ratio of 23.2, above the S&P 500 P/E ratio of 17.7. Shares are up 31.9% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Thermo Fisher Scientific as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, 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 Thermo Fisher Scientific Ratings Report now.

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1. As of noon trading, Humana ( HUM) is down $1.04 (-1.3%) to $77.69 on average volume Thus far, 1.6 million shares of Humana exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $76.88-$79.01 after having opened the day at $78.44 as compared to the previous trading day's close of $78.73.

Humana Inc., a health care company, offers insurance products and health and wellness services that incorporate an integrated approach to lifelong well-being. The company operates in three segments: Retail, Employer Group, and Health and Well-Being Services. Humana has a market cap of $12.1 billion and is part of the health care sector. The company has a P/E ratio of 8.6, 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 Wednesday.

TheStreet Ratings rates Humana 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 Humana 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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