Baxter International Inc. (BAX): 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

Baxter International ( BAX) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day down 0.3%. By the end of trading, Baxter International rose $1.30 (1.8%) to $71.85 on heavy volume. Throughout the day, 5,830,126 shares of Baxter International exchanged hands as compared to its average daily volume of 3,446,300 shares. The stock ranged in a price between $70.36-$71.99 after having opened the day at $70.56 as compared to the previous trading day's close of $70.55. Other companies within the Health Services industry that increased today were: Stereotaxis ( STXS), up 7.6%, Response Genetics ( RGDX), up 7.4%, Electromed ( ELMD), up 7.3% and MiMedx Group ( MDXG), up 7.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Baxter International Inc., through its subsidiaries, develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. Baxter International has a market cap of $38.2 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 5.8% year to date as of the close of trading on Wednesday. Currently there are 13 analysts that rate Baxter International a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Baxter International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Cutera ( CUTR), down 9.2%, Unilife Corporation ( UNIS), down 5.9%, Trius Therapeutics ( TSRX), down 5.4% and CombiMatrix Corporation ( CBMX), down 4.9% , were all laggards within the health services industry with Covidien ( COV) 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).

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.