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

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 higher today making it today's featured health services winner. The industry as a whole closed the day up 0.8%. By the end of trading, Covidien rose $0.61 (1.0%) to $61.63 on average volume. Throughout the day, 2,948,754 shares of Covidien exchanged hands as compared to its average daily volume of 2,749,700 shares. The stock ranged in a price between $60.82-$62.20 after having opened the day at $60.97 as compared to the previous trading day's close of $61.02. Other companies within the Health Services industry that increased today were: CardioNet ( BEAT), up 38.2%, Hansen Medical ( HNSN), up 21.9%, Trius Therapeutics ( TSRX), up 20.4% and Pingtan Marine Enterprise ( PME), up 13.1%.

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 5.7% year to date as of the close of trading on Tuesday. 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 negative front, NuVasive ( NUVA), down 12.6%, InfuSystems Holdings ( INFU), down 11.8%, Stereotaxis ( STXS), down 10.4% and Organovo Holdings ( ONVO), down 8.7%.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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