3 Health Services Stocks Pushing The Industry Higher

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 46 points (-0.3%) at 15,208 as of Tuesday, June 4, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,093 issues advancing vs. 1,832 declining with 114 unchanged.

The Health Services industry currently sits down 0.27 versus the S&P 500, which is down 0.24. A company within the industry that increased today was Grifols ( GRFS), up 2.62. On the negative front, top decliners within the industry include Boston Scientific ( BSX), down 1.70, Zimmer Holdings ( ZMH), down 1.37, Baxter International ( BAX), down 1.11 and Abbott Laboratories ( ABT), down 0.81.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry higher today:

3. ResMed ( RMD) is one of the companies pushing the Health Services industry higher today. As of noon trading, ResMed is up $0.69 (1.46) to $47.91 on heavy volume Thus far, 845,472 shares of ResMed exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $47.60-$48.45 after having opened the day at $47.64 as compared to the previous trading day's close of $47.22.

ResMed Inc., through its subsidiaries, engages in the development, manufacture, and distribution of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders. ResMed has a market cap of $6.8 billion and is part of the health care sector. The company has a P/E ratio of 22.5, above the S&P 500 P/E ratio of 17.7. Shares are up 13.6% year to date as of the close of trading on Monday. Currently there are 4 analysts that rate ResMed a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates ResMed as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full ResMed Ratings Report now.

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2. As of noon trading, CareFusion ( CFN) is up $0.30 (0.79) to $37.58 on heavy volume Thus far, 1.9 million shares of CareFusion exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $37.12-$37.66 after having opened the day at $37.27 as compared to the previous trading day's close of $37.28.

CareFusion Corporation provides various healthcare products and services in the United States and internationally. It operates in two segments, Medical Systems and Procedural Solutions. CareFusion has a market cap of $8.1 billion and is part of the health care sector. Shares are up 28.6% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate CareFusion a buy, no analysts rate it a sell, and 6 rate it a hold.

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

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1. As of noon trading, Agilent Technologies ( A) is up $0.45 (0.99) to $45.96 on average volume Thus far, 1.6 million shares of Agilent Technologies exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $45.94-$46.45 after having opened the day at $46.18 as compared to the previous trading day's close of $45.51.

Agilent Technologies, Inc. provides bio-analytical and electronic measurement solutions and services to the life sciences, chemical analysis, diagnostics and genomics, communications, and electronics industries worldwide. Agilent Technologies has a market cap of $15.8 billion and is part of the health care sector. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are up 11.0% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate Agilent Technologies a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Agilent Technologies as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins, increase in stock price during the past year 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 Agilent Technologies Ratings Report now.

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If you are interested in one of these 3 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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