Health Services Stocks On The Rise With Help From 4 Stocks

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 62 points (-0.4%) at 15,060 as of Wednesday, June 12, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 760 issues advancing vs. 2,254 declining with 88 unchanged.

The Health Services industry currently sits down 0.10 versus the S&P 500, which is down 0.61. A company within the industry that increased today was Smith & Nephew ( SNN), up 2.24. On the negative front, top decliners within the industry include Agilent Technologies ( A), down 0.83, Thermo Fisher Scientific ( TMO), down 0.82 and Catamaran ( CTRX), down 0.62.

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

4. Community Health Systems ( CYH) is one of the companies pushing the Health Services industry higher today. As of noon trading, Community Health Systems is up $1.05 (2.14) to $50.03 on average volume Thus far, 825,287 shares of Community Health Systems exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $50.02-$50.95 after having opened the day at $50.07 as compared to the previous trading day's close of $48.98.

Community Health Systems, Inc., together with its subsidiaries, provides general and specialized hospital healthcare services to patients in the United States. Community Health Systems has a market cap of $4.7 billion and is part of the health care sector. The company has a P/E ratio of 16.8, below the S&P 500 P/E ratio of 17.7. Shares are up 59.3% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Community Health Systems a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Community Health Systems as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, attractive valuation levels 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 Community Health Systems 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, Health Management Associates ( HMA) is up $1.26 (9.05) to $15.19 on heavy volume Thus far, 6.4 million shares of Health Management Associates exchanged hands as compared to its average daily volume of 5.3 million shares. The stock has ranged in price between $15.01-$15.52 after having opened the day at $15.30 as compared to the previous trading day's close of $13.93.

Health Management Associates, Inc., through its subsidiaries, engages in the operation of general acute care hospitals and other health care facilities in non-urban communities in the United States. Health Management Associates has a market cap of $3.7 billion and is part of the health care sector. The company has a P/E ratio of 23.2, above the S&P 500 P/E ratio of 17.7. Shares are up 49.5% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Health Management Associates a buy, 2 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Health Management Associates as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow. Get the full Health Management Associates 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, DaVita HealthCare Partners ( DVA) is up $0.61 (0.47) to $130.02 on average volume Thus far, 315,719 shares of DaVita HealthCare Partners exchanged hands as compared to its average daily volume of 780,700 shares. The stock has ranged in price between $129.61-$130.80 after having opened the day at $130.04 as compared to the previous trading day's close of $129.41.

DaVita HealthCare Partners Inc. provides kidney dialysis services for patients suffering from chronic kidney failure, or end stage renal disease (ESRD) in the United States. DaVita HealthCare Partners has a market cap of $13.5 billion and is part of the health care sector. The company has a P/E ratio of 30.6, above the S&P 500 P/E ratio of 17.7. Shares are up 17.1% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate DaVita HealthCare Partners a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates DaVita HealthCare Partners as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full DaVita HealthCare Partners 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, St Jude Medical ( STJ) is up $1.06 (2.42) to $44.89 on average volume Thus far, 1.4 million shares of St Jude Medical exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $44.78-$45.81 after having opened the day at $45.81 as compared to the previous trading day's close of $43.83.

St. Jude Medical, Inc. develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. It operates in two divisions, Cardiovascular and Ablation Technologies, and Implantable Electronic Systems. St Jude Medical has a market cap of $12.5 billion and is part of the health care sector. The company has a P/E ratio of 17.6, below the S&P 500 P/E ratio of 17.7. Shares are up 21.3% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate St Jude Medical a buy, 1 analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates St Jude Medical as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity, increase in stock price during the past year, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full St Jude Medical 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 4 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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