Medtronic Inc. (MDT): 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

Medtronic ( MDT) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day down 0.9%. By the end of trading, Medtronic fell $0.91 (-1.7%) to $51.58 on average volume. Throughout the day, 6,390,574 shares of Medtronic exchanged hands as compared to its average daily volume of 4,798,500 shares. The stock ranged in price between $51.19-$52.23 after having opened the day at $52.10 as compared to the previous trading day's close of $52.49. Other companies within the Health Services industry that declined today were: Pingtan Marine Enterprise ( PME), down 64.2%, Vision-Sciences Inc (DE ( VSCI), down 10.6%, CardioNet ( BEAT), down 9.0% and BG Medicine ( BGMD), down 8.1%.
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Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. Medtronic has a market cap of $51.9 billion and is part of the health care sector. The company has a P/E ratio of 15.2, below the S&P 500 P/E ratio of 17.7. Shares are up 28.0% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Medtronic a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Medtronic as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Vanguard Health Systems ( VHS), down 67.3%, USMD Holdings ( USMD), down 17.9%, Mela ( MELA), down 9.1% and Thermogenesis Corporation ( KOOL), down 6.3% , were all gainers within the health services industry with Becton Dickinson ( BDX) 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).

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