5 Stocks Improving Performance Of The Health Care Sector

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 8 points (0.1%) at 15,256 as of Monday, June 10, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,353 issues advancing vs. 1,578 declining with 107 unchanged.

The Health Care sector currently sits up 0.6% versus the S&P 500, which is up 0.1%. Top gainers within the sector include ACADIA Pharmaceuticals ( ACAD), up 17.1%, UnitedHealth Group ( UNH), up 2.0%, Fresenius Medical Care AG & Co. KGaA ( FMS), up 1.6%, Teva Pharmaceutical Industries ( TEVA), up 1.5% and Aetna ( AET), up 1.2%. On the negative front, top decliners within the sector include Catamaran ( CTRX), down 3.80, Regeneron Pharmaceuticals ( REGN), down 2.09, Smith & Nephew ( SNN), down 1.61, Celgene Corporation ( CELG), down 1.22 and Biogen Idec ( BIIB), down 1.20.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector higher today:

5. Edwards Life ( EW) is one of the companies pushing the Health Care sector higher today. As of noon trading, Edwards Life is up $1.96 (2.92) to $69.16 on average volume Thus far, 856,524 shares of Edwards Life exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $68.00-$69.37 after having opened the day at $68.14 as compared to the previous trading day's close of $67.20.

Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. Edwards Life has a market cap of $7.5 billion and is part of the health services industry. The company has a P/E ratio of 21.0, above the S&P 500 P/E ratio of 17.7. Shares are down 25.5% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Edwards Life a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Edwards Life 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, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Edwards Life Ratings Report now.

3x UPSIDE POTENTIAL: 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, WellPoint ( WLP) is up $1.83 (2.37) to $79.22 on average volume Thus far, 1.2 million shares of WellPoint exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $77.43-$79.24 after having opened the day at $77.43 as compared to the previous trading day's close of $77.39.

WellPoint, Inc., a health benefits company, through its subsidiaries, offers network-based managed care plans to large and small employer, individual, Medicaid, and senior markets in the United States. The company operates through three segments: Commercial, Consumer, and Other. WellPoint has a market cap of $23.0 billion and is part of the health services industry. The company has a P/E ratio of 9.0, below the S&P 500 P/E ratio of 17.7. Shares are up 27.0% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate WellPoint a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates WellPoint 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, increase in net income, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full WellPoint Ratings Report now.

3x UPSIDE POTENTIAL: 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, Covidien ( COV) is up $0.39 (0.60) to $65.15 on average volume Thus far, 1.7 million shares of Covidien exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $64.69-$65.33 after having opened the day at $64.90 as compared to the previous trading day's close of $64.76.

Covidien plc develops, manufactures, and sells healthcare products for use in clinical and home settings worldwide. Covidien has a market cap of $30.5 billion and is part of the health services industry. The company has a P/E ratio of 16.8, below the S&P 500 P/E ratio of 17.7. Shares are up 12.2% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Covidien a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Covidien as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, 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 Covidien Ratings Report now.

3x UPSIDE POTENTIAL: 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, Thermo Fisher Scientific ( TMO) is up $0.84 (0.99) to $85.42 on average volume Thus far, 1.7 million shares of Thermo Fisher Scientific exchanged hands as compared to its average daily volume of 2.7 million shares. The stock has ranged in price between $84.75-$85.50 after having opened the day at $84.95 as compared to the previous trading day's close of $84.58.

Thermo Fisher Scientific Inc. provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacture, analysis, discovery, and diagnostics. Thermo Fisher Scientific has a market cap of $31.2 billion and is part of the health services industry. The company has a P/E ratio of 24.1, above the S&P 500 P/E ratio of 17.7. Shares are up 32.6% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Thermo Fisher Scientific a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Thermo Fisher Scientific as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Thermo Fisher Scientific Ratings Report now.

3x UPSIDE POTENTIAL: 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, Express Scripts ( ESRX) is up $0.64 (1.02) to $63.14 on average volume Thus far, 2.0 million shares of Express Scripts exchanged hands as compared to its average daily volume of 5.1 million shares. The stock has ranged in price between $62.21-$63.27 after having opened the day at $62.34 as compared to the previous trading day's close of $62.50.

Express Scripts Holding Company provides a range of pharmacy benefit management (PBM) services primarily in the United States and Canada. It offers healthcare management and administration services on behalf of its clients. Express Scripts has a market cap of $50.4 billion and is part of the health services industry. The company has a P/E ratio of 36.5, above the S&P 500 P/E ratio of 17.7. Shares are up 14.1% year to date as of the close of trading on Friday. Currently there are 13 analysts that rate Express Scripts a buy, no analysts rate it a sell, and 3 rate it a hold.

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

3x UPSIDE POTENTIAL: 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 care sector could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health care sector 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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