Humana (HUM): 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

Humana ( HUM) 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, Humana fell $0.91 (-1.1%) to $78.93 on light volume. Throughout the day, 1,087,229 shares of Humana exchanged hands as compared to its average daily volume of 2,582,400 shares. The stock ranged in price between $78.23-$79.65 after having opened the day at $79.29 as compared to the previous trading day's close of $79.84. Other companies within the Health Services industry that declined today were: ERBA Diagnostics ( ERB), down 10.2%, Electromed ( ELMD), down 10.0%, BSD Medical Corporation ( BSDM), down 7.5% and Medical Action Industries ( MDCI), down 5.6%.
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Humana Inc., a health care company, offers insurance products and health and wellness services that incorporate an integrated approach to lifelong well-being. The company operates in three segments: Retail, Employer Group, and Health and Well-Being Services. Humana has a market cap of $12.5 billion and is part of the health care sector. The company has a P/E ratio of 8.9, below the S&P 500 P/E ratio of 17.7. Shares are up 15.4% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Humana a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Humana as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels 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, Nanosphere ( NSPH), down 12.4%, TranS1 ( TSON), down 12.0%, Escalon Medical Corporation ( ESMC), down 10.3% and Thermogenesis Corporation ( KOOL), down 10.0% , were all gainers within the health services industry with Intuitive Surgical ( ISRG) 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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