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 Varian Medical Systems (
VAR) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day down 1.1%. By the end of trading, Varian Medical Systems rose $1.01 (1.5%) to $67.85 on average volume. Throughout the day, 994,104 shares of Varian Medical Systems exchanged hands as compared to its average daily volume of 790,300 shares. The stock ranged in a price between $66.64-$68.48 after having opened the day at $66.64 as compared to the previous trading day's close of $66.84. Other companies within the Health Services industry that increased today were:
SunLink Health Systems (
SSY), up 8.0%,
Cyberonics (
CYBX), up 5.2%,
TranS1 (
TSON), up 4.6% and
Vision-Sciences Inc (DE (
VSCI), up 4.1%.
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Varian Medical Systems, Inc. designs, manufactures, sells, and services medical devices and software for treating cancer with radiotherapy, radiosurgery, proton therapy, and brachytherapy worldwide. Varian Medical Systems has a market cap of $7.3 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 down 4.8% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Varian Medical Systems a buy, 1 analyst rates it a sell, and 2 rate it a hold.
TheStreet Ratings rates
Varian Medical Systems 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, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
On the negative front,
NeuroMetrix (
NURO), down 16.9%,
Uroplasty (
UPI), down 7.6%,
IMRIS (
IMRS), down 6.7% and
Synergetics USA (
SURG), down 5.7% , were all laggards within the health services industry with
Abbott Laboratories (
ABT) 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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