Covidien PLC (COV): Today's Featured Health Services Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Covidien ( COV) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Covidien fell $0.71 (-1.1%) to $61.22 on light volume. Throughout the day, 2,000,243 shares of Covidien exchanged hands as compared to its average daily volume of 3,221,900 shares. The stock ranged in price between $61.10-$61.91 after having opened the day at $61.78 as compared to the previous trading day's close of $61.93. Other companies within the Health Services industry that declined today were: Electromed ( ELMD), down 6.3%, Hooper Holmes ( HH), down 6.2%, USMD Holdings ( USMD), down 6.2% and Organovo Holdings ( ONVO), down 5.8%.

Covidien plc develops, manufactures, and sells healthcare products for use in clinical and home settings worldwide. Covidien has a market cap of $28.6 billion and is part of the health care sector. Shares are up 7.3% year to date as of the close of trading on Friday. Currently there are 13 analysts that rate Covidien a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Covidien as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, increase in stock price during the past year and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, AdCare Health Systems ( ADK), up 6.8%, Mazor Robotics ( MZOR), up 6.5%, Health Insurance Innovations ( HIIQ), up 6.0% and Trius Therapeutics ( TSRX), up 5.9% , were all gainers within the health services industry with Boston Scientific ( BSX) 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.

null

More from Markets

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker