3 Stocks Pushing The Health Services Industry Downward

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 72 points (0.4%) at 16,112 as of Thursday, Feb. 20, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,810 issues advancing vs. 1,095 declining with 165 unchanged.

The Health Services industry currently sits up 0.5% versus the S&P 500, which is up 0.3%. Top gainers within the industry include Icon ( ICLR), up 7.4%, Parexel International Corporation ( PRXL), up 3.3%, Varian Medical Systems ( VAR), up 2.5%, PerkinElmer ( PKI), up 2.0% and Agilent Technologies ( A), up 1.5%.

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

3. DexCom ( DXCM) is one of the companies pushing the Health Services industry lower today. As of noon trading, DexCom is down $1.61 (-3.6%) to $42.92 on heavy volume. Thus far, 875,413 shares of DexCom exchanged hands as compared to its average daily volume of 652,000 shares. The stock has ranged in price between $42.04-$44.34 after having opened the day at $44.34 as compared to the previous trading day's close of $44.53.

DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring systems. DexCom has a market cap of $3.2 billion and is part of the health care sector. Shares are up 25.8% year-to-date as of the close of trading on Wednesday. Currently there are 8 analysts that rate DexCom a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates DexCom as a sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity. Get the full DexCom Ratings Report now.

STOCKS TO BUY: 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, Universal Health Services ( UHS) is down $0.85 (-1.0%) to $81.15 on light volume. Thus far, 198,910 shares of Universal Health Services exchanged hands as compared to its average daily volume of 706,600 shares. The stock has ranged in price between $81.11-$82.25 after having opened the day at $82.17 as compared to the previous trading day's close of $82.00.

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 $7.6 billion and is part of the health care sector. Shares are up 0.9% year-to-date as of the close of trading on Wednesday. Currently there are 9 analysts that rate Universal Health Services a buy, no analysts rate it a sell, and 4 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. Get the full Universal Health Services Ratings Report now.

STOCKS TO BUY: 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, DaVita HealthCare Partners ( DVA) is down $0.55 (-0.8%) to $65.52 on light volume. Thus far, 382,519 shares of DaVita HealthCare Partners exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $65.39-$66.17 after having opened the day at $66.07 as compared to the previous trading day's close of $66.07.

DaVita HealthCare Partners Inc. provides kidney dialysis services for patients suffering from chronic kidney failure, or end stage renal disease (ESRD) in the United States. DaVita HealthCare Partners has a market cap of $14.2 billion and is part of the health care sector. Shares are up 5.5% year-to-date as of the close of trading on Wednesday. Currently there are 9 analysts that rate DaVita HealthCare Partners a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates DaVita HealthCare Partners as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full DaVita HealthCare Partners Ratings Report now.

STOCKS TO BUY: 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).
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