3 Health Services Stocks Nudging The Industry Higher

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.

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 3 points (0.0%) at 16,578 as of Thursday, May 1, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,778 issues advancing vs. 1,187 declining with 180 unchanged.

The Health Services industry currently sits up 0.6% versus the S&P 500, which is up 0.1%. Top gainers within the industry include Heartware International ( HTWR), up 12.9%, Catamaran ( CTRX), up 11.5%, Wright Medical Group ( WMGI), up 9.7%, Hologic ( HOLX), up 8.1% and Waters ( WAT), up 1.8%.

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

3. HCA Holdings ( HCA) is one of the companies pushing the Health Services industry higher today. As of noon trading, HCA Holdings is up $0.40 (0.8%) to $52.40 on average volume. Thus far, 1.4 million shares of HCA Holdings exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $51.48-$52.84 after having opened the day at $52.00 as compared to the previous trading day's close of $52.00.

HCA Holdings, Inc., through its subsidiaries, provides health care services. HCA Holdings has a market cap of $22.8 billion and is part of the health care sector. The company has a P/E ratio of 13.8, below the S&P 500 P/E ratio of 17.7. Shares are up 9.0% year-to-date as of the close of trading on Wednesday. Currently there are 15 analysts who rate HCA Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates HCA Holdings as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins. Get the full HCA Holdings Ratings Report now.

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2. As of noon trading, Cigna ( CI) is up $2.50 (3.1%) to $82.54 on average volume. Thus far, 1.5 million shares of Cigna exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $81.70-$83.45 after having opened the day at $82.97 as compared to the previous trading day's close of $80.04.

Cigna Corporation, a health services organization, provides insurance and related products and services in the United States and internationally. Cigna has a market cap of $21.1 billion and is part of the health care sector. The company has a P/E ratio of 15.0, below the S&P 500 P/E ratio of 17.7. Shares are down 11.0% year-to-date as of the close of trading on Wednesday. Currently there are 8 analysts who rate Cigna a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Cigna 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 and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Cigna 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, Medtronic ( MDT) is up $0.50 (0.8%) to $59.32 on light volume. Thus far, 1.7 million shares of Medtronic exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $58.56-$59.48 after having opened the day at $58.84 as compared to the previous trading day's close of $58.82.

Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. The company operates in two segments, Cardiac and Vascular Group, and Restorative Therapies Group. Medtronic has a market cap of $58.8 billion and is part of the health care sector. The company has a P/E ratio of 17.0, below the S&P 500 P/E ratio of 17.7. Shares are up 2.5% year-to-date as of the close of trading on Wednesday. Currently there are 7 analysts who rate Medtronic a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Medtronic as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Medtronic 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).

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