Edwards Life Sciences Corp. (EW): 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

Edwards Life ( EW) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day up 0.3%. By the end of trading, Edwards Life rose $0.84 (1.3%) to $67.19 on light volume. Throughout the day, 754,113 shares of Edwards Life exchanged hands as compared to its average daily volume of 1,479,800 shares. The stock ranged in a price between $66.17-$67.51 after having opened the day at $66.97 as compared to the previous trading day's close of $66.35. Other companies within the Health Services industry that increased today were: CombiMatrix Corporation ( CBMX), up 42.8%, USMD Holdings ( USMD), up 17.5%, CardioNet ( BEAT), up 9.9% and IMRIS ( IMRS), up 7.7%.
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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 care sector. The company has a P/E ratio of 21.0, above the S&P 500 P/E ratio of 17.7. Shares are down 26.4% year to date as of the close of trading on Monday. 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.

On the negative front, Pingtan Marine Enterprise ( PME), down 65.0%, Nanosphere ( NSPH), down 7.7%, Genomic Health ( GHDX), down 7.6% and Rockwell Medical ( RMTI), down 7.3% , were all laggards within the health services industry with UnitedHealth Group ( UNH) 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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