Catamaran Corp (CTRX): Today's Featured Health Services Laggard

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

Catamaran ( CTRX) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.9%. By the end of trading, Catamaran fell $1.63 (-3.2%) to $48.66 on average volume. Throughout the day, 1,370,355 shares of Catamaran exchanged hands as compared to its average daily volume of 1,561,500 shares. The stock ranged in price between $48.10-$50.50 after having opened the day at $49.86 as compared to the previous trading day's close of $50.29. Other companies within the Health Services industry that declined today were: ImmunoCellular Therapeutics ( IMUC), down 7.1%, Iridex Corporation ( IRIX), down 5.5%, EnteroMedics ( ETRM), down 4.0% and BG Medicine ( BGMD), down 2.3%.
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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 $10.0 billion and is part of the health care sector. The company has a P/E ratio of 65.3, above the S&P 500 P/E ratio of 17.7. Shares are up 2.6% year to date as of the close of trading on Friday. 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.

On the positive front, Retractable Technologies ( RVP), down 10.9%, Bovie Medical Corporation ( BVX), down 7.5%, Trius Therapeutics ( TSRX), down 7.1% and Synergetics USA ( SURG), down 7.0% , were all gainers within the health services industry with Aetna ( AET) being today's featured health services industry leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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