Aetna Inc (AET): Today's Featured Health Services Laggard

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

Aetna ( AET) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Aetna fell $0.90 (-1.5%) to $59.14 on light volume. Throughout the day, 2,106,186 shares of Aetna exchanged hands as compared to its average daily volume of 3,355,800 shares. The stock ranged in price between $58.97-$59.93 after having opened the day at $59.86 as compared to the previous trading day's close of $60.04. Other companies within the Health Services industry that declined today were: American Shared Hospital Services ( AMS), down 8.2%, AdCare Health Systems ( ADK), down 6.5%, Oculus Innovative ( OCLS), down 6.4% and NeuroMetrix ( NURO), down 5.0%.
  • 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.

Aetna Inc. operates as a diversified health care benefits company in the United States. The company operates in three segments: Health Care, Group Insurance, and Large Case Pensions. Aetna has a market cap of $19.4 billion and is part of the health care sector. The company has a P/E ratio of 12.2, below the S&P 500 P/E ratio of 17.7. Shares are up 29.6% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Aetna a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Aetna as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Lakeland Industries ( LAKE), down 12.1%, InfuSystems Holdings ( INFU), down 6.8%, Nanosphere ( NSPH), down 6.5% and Given Imaging ( GIVN), down 6.4% , were all gainers within the health services industry with Boston Scientific ( BSX) being today's featured health services industry leader.

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.

null

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers