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

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. 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. A company within the industry that increased today was Grifols ( GRFS), up 2.62.

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

5. Tenet Healthcare ( THC) is one of the companies pushing the Health Services industry lower today. As of noon trading, Tenet Healthcare is down $0.85 (-1.8%) to $46.19 on average volume Thus far, 860,569 shares of Tenet Healthcare exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $46.00-$47.71 after having opened the day at $47.00 as compared to the previous trading day's close of $47.04.

Tenet Healthcare Corporation, an investor-owned health care services company, owns and operates acute care hospitals, ambulatory surgery centers, diagnostic imaging centers, urgent care centers, and related health care facilities in the United States. Tenet Healthcare has a market cap of $4.9 billion and is part of the health care sector. The company has a P/E ratio of 135.3, above the S&P 500 P/E ratio of 17.7. Shares are up 44.9% year to date as of the close of trading on Monday. Currently there are 7 analysts that rate Tenet Healthcare a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Tenet Healthcare as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins. Get the full Tenet Healthcare 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, Stryker Corporation ( SYK) is down $0.72 (-1.1%) to $66.59 on light volume Thus far, 290,579 shares of Stryker Corporation exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $66.49-$67.35 after having opened the day at $67.31 as compared to the previous trading day's close of $67.31.

Stryker Corporation, a medical technology company, provides reconstructive, medical and surgical, and neurotechnology and spine products for doctors, hospitals, and other healthcare facilities. Stryker Corporation has a market cap of $25.1 billion and is part of the health care sector. The company has a P/E ratio of 20.3, above the S&P 500 P/E ratio of 17.7. Shares are up 22.8% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate Stryker Corporation a buy, 1 analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates Stryker Corporation 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, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Stryker Corporation 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, St Jude Medical ( STJ) is down $0.78 (-1.8%) to $42.57 on light volume Thus far, 738,092 shares of St Jude Medical exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $42.52-$43.49 after having opened the day at $43.36 as compared to the previous trading day's close of $43.35.

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 $12.2 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 19.6% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate St Jude Medical a buy, 2 analysts rate it a sell, and 11 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 net income, notable return on equity, increase in stock price during the past year, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full St Jude Medical 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, Becton Dickinson ( BDX) is down $0.96 (-1.0%) to $98.24 on light volume Thus far, 295,333 shares of Becton Dickinson exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $98.07-$99.42 after having opened the day at $99.15 as compared to the previous trading day's close of $99.20.

Becton, Dickinson and Company, a medical technology company, develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. The company's BD Medical segment produces medical devices that are used in various healthcare settings. Becton Dickinson has a market cap of $19.2 billion and is part of the health care sector. The company has a P/E ratio of 17.6, below the S&P 500 P/E ratio of 17.7. Shares are up 26.1% year to date as of the close of trading on Monday. Currently there are 4 analysts that rate Becton Dickinson a buy, 5 analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Becton Dickinson as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Becton Dickinson 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, Medtronic ( MDT) is down $0.32 (-0.6%) to $51.74 on average volume Thus far, 2.7 million shares of Medtronic exchanged hands as compared to its average daily volume of 4.4 million shares. The stock has ranged in price between $51.64-$52.09 after having opened the day at $51.86 as compared to the previous trading day's close of $52.06.

Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. Medtronic has a market cap of $51.7 billion and is part of the health care sector. The company has a P/E ratio of 15.1, below the S&P 500 P/E ratio of 17.7. Shares are up 26.9% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate Medtronic a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Medtronic as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Medtronic 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 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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