St Jude Medical Inc. (STJ): 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

St Jude Medical ( STJ) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.5%. By the end of trading, St Jude Medical fell $0.53 (-1.2%) to $45.17 on average volume. Throughout the day, 2,198,793 shares of St Jude Medical exchanged hands as compared to its average daily volume of 2,452,700 shares. The stock ranged in price between $44.97-$45.62 after having opened the day at $45.41 as compared to the previous trading day's close of $45.70. Other companies within the Health Services industry that declined today were: InspireMD ( NSPRD), down 15.4%, InspireMD ( NSPR), down 15.4%, American Caresource Holdings ( ANCI), down 12.4% and Vision-Sciences Inc (DE ( VSCI), down 6.4%.
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St. Jude Medical, Inc. develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. It operates in two divisions, Cardiovascular and Ablation Technologies, and Implantable Electronic Systems. St Jude Medical has a market cap of $13.3 billion and is part of the health care sector. The company has a P/E ratio of 18.6, above the S&P 500 P/E ratio of 17.7. Shares are up 26.5% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate St Jude Medical a buy, 1 analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates St Jude Medical 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, notable return on equity, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Escalon Medical Corporation ( ESMC), down 33.8%, Nordion ( NDZ), down 12.6%, BSD Medical Corporation ( BSDM), down 11.7% and Thermogenesis Corporation ( KOOL), down 11.6% , were all gainers within the health services industry with HCA Holdings ( HCA) 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).

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