Community Health Systems Inc (CYH): 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

Community Health Systems ( CYH) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Community Health Systems fell $1.08 (-2.4%) to $43.23 on average volume. Throughout the day, 1,424,694 shares of Community Health Systems exchanged hands as compared to its average daily volume of 1,240,500 shares. The stock ranged in price between $43.02-$44.78 after having opened the day at $44.38 as compared to the previous trading day's close of $44.31. Other companies within the Health Services industry that declined today were: Bovie Medical Corporation ( BVX), down 9.9%, Edap TMS ( EDAP), down 8.6%, TranS1 ( TSON), down 5.9% and LCA-Vision ( LCAV), down 5.4%.
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Community Health Systems, Inc., together with its subsidiaries, provides general and specialized hospital healthcare services to patients in the United States. Community Health Systems has a market cap of $4.2 billion and is part of the health care sector. The company has a P/E ratio of 15.0, below the S&P 500 P/E ratio of 17.7. Shares are up 45.3% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Community Health Systems a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Community Health Systems as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Unilife Corporation ( UNIS), down 14.2%, ERBA Diagnostics ( ERB), down 13.9%, Urologix ( ULGX), down 12.7% and Rockwell Medical ( RMTI), down 9.9%.

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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