Universal Health Services Inc. (UHS): 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.

Universal Health Services ( UHS) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day up 0.1%. By the end of trading, Universal Health Services rose $1.76 (2.2%) to $81.53 on heavy volume. Throughout the day, 1,200,118 shares of Universal Health Services exchanged hands as compared to its average daily volume of 610,300 shares. The stock ranged in a price between $79.64-$81.56 after having opened the day at $80.14 as compared to the previous trading day's close of $79.77. Other companies within the Health Services industry that increased today were: ImmunoCellular Therapeutics ( IMUC), up 35.7%, Biolase ( BIOL), up 9.9%, DaVita HealthCare Partners ( DVA), up 8.9% and Heska Corporation ( HSKA), up 7.9%.

Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. Universal Health Services has a market cap of $7.3 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 65.0% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Universal Health Services a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Universal Health Services as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, OraSure Technologies ( OSUR), down 16.6%, ERBA Diagnostics ( ERB), down 16.4%, Digirad Corporation ( DRAD), down 15.1% and SunLink Health Systems ( SSY), down 10.0% , were all laggards within the health services industry with Boston Scientific ( BSX) 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).

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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