4 Stocks Underperforming Today In The Health Services Industry

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 54 points (0.4%) at 15,287 as of Friday, May 17, 2013, 12:54 PM ET. The NYSE advances/declines ratio sits at 1,992 issues advancing vs. 899 declining with 140 unchanged.

The Health Services industry currently sits up 0.5% versus the S&P 500, which is up 0.5%. On the negative front, top decliners within the industry include Abbott Laboratories ( ABT), down 1.30, HCA Holdings ( HCA), down 1.19 and Stryker Corporation ( SYK), down 0.70. Top gainers within the industry include Humana ( HUM), up 2.3%, UnitedHealth Group ( UNH), up 1.6%, Express Scripts ( ESRX), up 1.3%, WellPoint ( WLP), up 1.2% and Intuitive Surgical ( ISRG), up 1.0%.

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

4. Smith & Nephew ( SNN) is one of the companies pushing the Health Services industry lower today. As of noon trading, Smith & Nephew is down $0.93 (-1.6%) to $58.85 on light volume Thus far, 14,425 shares of Smith & Nephew exchanged hands as compared to its average daily volume of 72,900 shares. The stock has ranged in price between $58.83-$59.13 after having opened the day at $58.85 as compared to the previous trading day's close of $59.78.

Smith & Nephew plc develops, manufactures, markets, and sells medical devices in the advanced surgical devices and advanced wound management sectors worldwide. Smith & Nephew has a market cap of $10.8 billion and is part of the health care sector. The company has a P/E ratio of 16.0, below the S&P 500 P/E ratio of 17.7. Shares are up 7.9% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Smith & Nephew as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Smith & Nephew Ratings Report now.

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3. As of noon trading, Catamaran ( CTRX) is down $2.15 (-4.1%) to $50.23 on average volume Thus far, 1.1 million shares of Catamaran exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $50.21-$52.64 after having opened the day at $52.26 as compared to the previous trading day's close of $52.38.

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 $11.0 billion and is part of the health care sector. The company has a P/E ratio of 71.9, above the S&P 500 P/E ratio of 17.7. Shares are up 13.0% year to date as of the close of trading on Thursday.

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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2. As of noon trading, Zimmer Holdings ( ZMH) is down $0.72 (-0.9%) to $79.90 on average volume Thus far, 766,491 shares of Zimmer Holdings exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $79.65-$80.52 after having opened the day at $79.79 as compared to the previous trading day's close of $80.62.

Zimmer Holdings, Inc., through its subsidiaries, engages in the design, development, manufacture, and marketing of orthopedic reconstructive devices, spinal and trauma devices, biologics, dental implants, and related surgical products in the Americas, Europe, and the Asia Pacific. Zimmer Holdings has a market cap of $13.6 billion and is part of the health care sector. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 20.9% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Zimmer Holdings 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, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Zimmer Holdings Ratings Report now.

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1. As of noon trading, Edwards Life ( EW) is down $2.06 (-3.0%) to $66.55 on heavy volume Thus far, 1.1 million shares of Edwards Life exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $66.41-$69.23 after having opened the day at $68.68 as compared to the previous trading day's close of $68.61.

Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. Edwards Life has a market cap of $8.0 billion and is part of the health care sector. The company has a P/E ratio of 22.4, above the S&P 500 P/E ratio of 17.7. Shares are down 23.9% year to date as of the close of trading on Thursday.

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

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If you are interested in one of these 4 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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