5 Health Services Stocks Dragging The Industry Down

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

One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 13 points (0.1%) at 15,338 as of Friday, May 31, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 963 issues advancing vs. 1,995 declining with 88 unchanged.

The Health Services industry currently sits up 0.1% versus the S&P 500, which is down 0.09. On the negative front, top decliners within the industry include Humana ( HUM), down 2.44, ResMed ( RMD), down 1.89, Aetna ( AET), down 1.57, Fresenius Medical Care AG & Co. KGaA ( FMS), down 1.40 and WellPoint ( WLP), down 1.20. A company within the industry that increased today was Hologic ( HOLX), up 1.48.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Intuitive Surgical ( ISRG) is one of the companies pushing the Health Services industry lower today. As of noon trading, Intuitive Surgical is down $5.03 (-1.0%) to $499.65 on light volume Thus far, 80,989 shares of Intuitive Surgical exchanged hands as compared to its average daily volume of 502,600 shares. The stock has ranged in price between $499.03-$503.76 after having opened the day at $503.15 as compared to the previous trading day's close of $504.68.

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories. Intuitive Surgical has a market cap of $20.0 billion and is part of the health care sector. The company has a P/E ratio of 29.3, above the S&P 500 P/E ratio of 17.7. Shares are up 1.7% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Intuitive Surgical a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Intuitive Surgical 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, impressive record of earnings per share growth, compelling growth in net income 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 Intuitive Surgical Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

4. As of noon trading, Baxter International ( BAX) is down $0.51 (-0.7%) to $71.49 on light volume Thus far, 852,687 shares of Baxter International exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $71.35-$71.97 after having opened the day at $71.79 as compared to the previous trading day's close of $72.00.

Baxter International Inc., through its subsidiaries, develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. Baxter International has a market cap of $38.7 billion and is part of the health care sector. The company has a P/E ratio of 17.2, below the S&P 500 P/E ratio of 17.7. Shares are up 8.0% year to date as of the close of trading on Thursday. Currently there are 13 analysts that rate Baxter International a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Baxter International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Baxter International Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, Abbott Laboratories ( ABT) is down $0.51 (-1.4%) to $37.17 on average volume Thus far, 4.0 million shares of Abbott Laboratories exchanged hands as compared to its average daily volume of 7.0 million shares. The stock has ranged in price between $37.13-$37.65 after having opened the day at $37.49 as compared to the previous trading day's close of $37.68.

Abbott Laboratories engages in the discovery, development, manufacture, and sale of health care products worldwide. Abbott Laboratories has a market cap of $58.8 billion and is part of the health care sector. The company has a P/E ratio of 9.8, below the S&P 500 P/E ratio of 17.7. Shares are up 15.2% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Abbott Laboratories a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Abbott Laboratories as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share. Get the full Abbott Laboratories Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Express Scripts ( ESRX) is down $0.72 (-1.1%) to $62.88 on light volume Thus far, 1.3 million shares of Express Scripts exchanged hands as compared to its average daily volume of 5.2 million shares. The stock has ranged in price between $62.68-$63.45 after having opened the day at $63.18 as compared to the previous trading day's close of $63.60.

Express Scripts Holding Company provides a range of pharmacy benefit management (PBM) services primarily in the United States and Canada. It offers healthcare management and administration services on behalf of its clients. Express Scripts has a market cap of $51.5 billion and is part of the health care sector. The company has a P/E ratio of 37.3, above the S&P 500 P/E ratio of 17.7. Shares are up 16.7% year to date as of the close of trading on Thursday. Currently there are 13 analysts that rate Express Scripts a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Express Scripts as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Express Scripts Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, UnitedHealth Group ( UNH) is down $0.70 (-1.1%) to $63.96 on light volume Thus far, 1.7 million shares of UnitedHealth Group exchanged hands as compared to its average daily volume of 6.0 million shares. The stock has ranged in price between $63.87-$64.84 after having opened the day at $64.45 as compared to the previous trading day's close of $64.66.

UnitedHealth Group Incorporated operates as a diversified health and well-being company in the United States. UnitedHealth Group has a market cap of $64.6 billion and is part of the health care sector. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are up 19.2% year to date as of the close of trading on Thursday. Currently there are 14 analysts that rate UnitedHealth Group a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates UnitedHealth Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full UnitedHealth Group Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 5 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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