3 Health Services Stocks Pushing Industry Growth

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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 205 points (-1.3%) at 15,494 as of Monday, Feb. 3, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 659 issues advancing vs. 2,313 declining with 134 unchanged.

The Health Services industry currently sits down 1.4% versus the S&P 500, which is down 1.3%. On the negative front, top decliners within the industry include Align Technology ( ALGN), down 5.7%, Cooper Companies ( COO), down 3.3%, Universal Health Services ( UHS), down 2.9%, Edwards Life ( EW), down 2.5% and Mettler-Toledo International ( MTD), down 2.5%.

TheStreet would like to highlight 3 stocks pushing the industry higher today:

3. Smith & Nephew ( SNN) is one of the companies pushing the Health Services industry higher today. As of noon trading, Smith & Nephew is up $0.44 (0.6%) to $72.68 on average volume. Thus far, 37,220 shares of Smith & Nephew exchanged hands as compared to its average daily volume of 70,400 shares. The stock has ranged in price between $72.50-$73.27 after having opened the day at $73.12 as compared to the previous trading day's close of $72.24.

Smith & Nephew plc develops, manufactures, markets, and sells medical devices in the advanced surgical devices and advanced wound management sectors worldwide. Smith & Nephew has a market cap of $13.1 billion and is part of the health care sector. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are up 0.7% year-to-date as of the close of trading on Friday. Currently there are 4 analysts who rate Smith & Nephew a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Smith & Nephew 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, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Smith & Nephew Ratings Report now.

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

2. As of noon trading, Fresenius Medical Care AG & Co. KGaA ( FMS) is up $0.25 (0.7%) to $35.54 on average volume. Thus far, 66,282 shares of Fresenius Medical Care AG & Co. KGaA exchanged hands as compared to its average daily volume of 147,200 shares. The stock has ranged in price between $35.39-$35.65 after having opened the day at $35.59 as compared to the previous trading day's close of $35.29.

Fresenius Medical Care AG & Co. KGaA, a kidney dialysis company, operates in the field of dialysis care and dialysis products for the treatment of end-stage renal disease. Fresenius Medical Care AG & Co. KGaA has a market cap of $21.5 billion and is part of the health care sector. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 0.6% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate Fresenius Medical Care AG & Co. KGaA a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Fresenius Medical Care AG & Co. KGaA as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Fresenius Medical Care AG & Co. KGaA Ratings Report now.

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

1. As of noon trading, ArthroCare Corporation ( ARTC) is up $3.22 (7.1%) to $48.60 on heavy volume. Thus far, 3.0 million shares of ArthroCare Corporation exchanged hands as compared to its average daily volume of 180,200 shares. The stock has ranged in price between $48.45-$48.90 after having opened the day at $48.59 as compared to the previous trading day's close of $45.38.

ArthroCare Corporation, medical device company, engages in the development, manufacture, and marketing of surgical products based on its Coblation technology in the Americas and internationally. ArthroCare Corporation has a market cap of $1.3 billion and is part of the health care sector. The company has a P/E ratio of 72.4, above the S&P 500 P/E ratio of 17.7. Shares are up 12.8% year-to-date as of the close of trading on Friday. Currently there are 4 analysts who rate ArthroCare Corporation a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates ArthroCare Corporation 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, increase in net income, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full ArthroCare Corporation Ratings Report now.

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

If you are interested in one of these 3 stocks, 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).

null

More from Markets

Stocks Trade Lower as Rates Continue Rising; Boeing Holds Gains

Stocks Trade Lower as Rates Continue Rising; Boeing Holds Gains

4 Stocks Making Important Moves Wednesday

4 Stocks Making Important Moves Wednesday

Dow Futures Turn Positive After Boeing Earnings Blowout; Twitter Boosts Nasdaq

Dow Futures Turn Positive After Boeing Earnings Blowout; Twitter Boosts Nasdaq

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know

Facebook Prepares for Earnings and 4 Other Stories You Must Know Wednesday

Facebook Prepares for Earnings and 4 Other Stories You Must Know Wednesday