St Jude Medical Inc. (STJ): Today's Featured Health Services Winner

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

St Jude Medical ( STJ) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day down 0.2%. By the end of trading, St Jude Medical rose $0.84 (1.9%) to $44.67 on average volume. Throughout the day, 2,843,112 shares of St Jude Medical exchanged hands as compared to its average daily volume of 2,332,000 shares. The stock ranged in a price between $44.60-$45.81 after having opened the day at $45.81 as compared to the previous trading day's close of $43.83. Other companies within the Health Services industry that increased today were: USMD Holdings ( USMD), up 21.4%, Escalon Medical Corporation ( ESMC), up 13.8%, Health Management Associates ( HMA), up 11.3% and IsoRay ( ISR), up 9.7%.
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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.

On the negative front, GenMark Diagnostics ( GNMK), down 7.1%, Nanosphere ( NSPH), down 6.4%, Mela ( MELA), down 5.8% and Hansen Medical ( HNSN), down 5.4% , 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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