CareFusion Corp (CFN): Today's Featured Health Services Winner

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

CareFusion ( CFN) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day down 0.6%. By the end of trading, CareFusion rose $0.42 (1.1%) to $37.70 on heavy volume. Throughout the day, 4,576,196 shares of CareFusion exchanged hands as compared to its average daily volume of 1,830,600 shares. The stock ranged in a price between $37.12-$37.98 after having opened the day at $37.27 as compared to the previous trading day's close of $37.28. Other companies within the Health Services industry that increased today were: NeuroMetrix ( NURO), up 30.0%, CardioNet ( BEAT), up 16.6%, Dehaier Medical Systems ( DHRM), up 6.1% and TearLab Corpoartion ( TEAR), up 5.4%.
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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.

On the negative front, IsoRay ( ISR), down 8.7%, Retractable Technologies ( RVP), down 7.7%, TranS1 ( TSON), down 6.9% and Escalon Medical Corporation ( ESMC), down 6.7% , were all laggards within the health services industry with St Jude Medical ( STJ) being today's health services industry laggard.

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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