4 Stocks Pulling The Health Services Industry Downward

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 87 points (-0.6%) at 14,874 as of Thursday, June 6, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,317 issues advancing vs. 1,603 declining with 125 unchanged.

The Health Services industry currently sits down 0.59 versus the S&P 500, which is down 0.38. On the negative front, top decliners within the industry include ResMed ( RMD), down 3.57, and Becton Dickinson ( BDX), down 0.63. Top gainers within the industry include LifePoint Hospitals ( LPNT), up 3.6%, Tenet Healthcare ( THC), up 1.8%, Covance ( CVD), up 1.7%, Smith & Nephew ( SNN), up 1.3% and Fresenius Medical Care AG & Co. KGaA ( FMS), up 0.8%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. DENTSPLY International ( XRAY) is one of the companies pushing the Health Services industry lower today. As of noon trading, DENTSPLY International is down $0.56 (-1.4%) to $40.87 on light volume Thus far, 171,021 shares of DENTSPLY International exchanged hands as compared to its average daily volume of 766,200 shares. The stock has ranged in price between $40.75-$41.54 after having opened the day at $41.40 as compared to the previous trading day's close of $41.43.

DENTSPLY International Inc. designs, develops, manufactures, and markets a range of consumable dental products for the professional dental market worldwide. DENTSPLY International has a market cap of $6.0 billion and is part of the health care sector. The company has a P/E ratio of 18.2, above the S&P 500 P/E ratio of 17.7. Shares are up 4.6% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate DENTSPLY International a buy, 2 analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates DENTSPLY International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full DENTSPLY 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, Varian Medical Systems ( VAR) is down $0.58 (-0.8%) to $67.27 on light volume Thus far, 262,450 shares of Varian Medical Systems exchanged hands as compared to its average daily volume of 786,800 shares. The stock has ranged in price between $66.93-$67.99 after having opened the day at $67.84 as compared to the previous trading day's close of $67.85.

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 $7.2 billion and is part of the health care sector. The company has a P/E ratio of 17.1, below the S&P 500 P/E ratio of 17.7. Shares are down 3.4% year to date as of the close of trading on Wednesday. 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. Get the full Varian Medical Systems 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, Catamaran ( CTRX) is down $0.24 (-0.5%) to $47.73 on light volume Thus far, 384,583 shares of Catamaran exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $47.26-$48.24 after having opened the day at $47.99 as compared to the previous trading day's close of $47.97.

Catamaran Corporation provides pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefits management industry in North America. The company operates in two segments: PBM and HCIT. Catamaran has a market cap of $9.9 billion and is part of the health care sector. The company has a P/E ratio of 65.2, above the S&P 500 P/E ratio of 17.7. Shares are up 2.5% year to date as of the close of trading on Wednesday. Currently there are 13 analysts that rate Catamaran a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Catamaran 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, good cash flow from operations, compelling growth in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Catamaran 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 $0.54 (-0.9%) to $61.21 on light volume Thus far, 2.2 million shares of UnitedHealth Group exchanged hands as compared to its average daily volume of 6.1 million shares. The stock has ranged in price between $60.95-$61.84 after having opened the day at $61.75 as compared to the previous trading day's close of $61.75.

UnitedHealth Group Incorporated operates as a diversified health and well-being company in the United States. UnitedHealth Group has a market cap of $63.6 billion and is part of the health care sector. The company has a P/E ratio of 12.2, below the S&P 500 P/E ratio of 17.7. Shares are up 13.8% year to date as of the close of trading on Wednesday. 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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