CYH, CTRX And ISRG, Pushing 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.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 91 points (0.6%) at 16,492 as of Wednesday, May 7, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,744 issues advancing vs. 1,239 declining with 163 unchanged.

The Health Services industry currently sits down 0.9% versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the industry include Novadaq Technologies ( NVDQ), down 14.0%, Boston Scientific ( BSX), down 1.2%, HCA Holdings ( HCA), down 1.0% and Medtronic ( MDT), down 0.6%. Top gainers within the industry include Humana ( HUM), up 4.1%, Hologic ( HOLX), up 2.0%, Fresenius Medical Care AG & Co. KGaA ( FMS), up 1.4% and Cigna ( CI), up 1.0%.

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

3. Community Health Systems ( CYH) is one of the companies pushing the Health Services industry lower today. As of noon trading, Community Health Systems is down $1.97 (-5.0%) to $37.45 on heavy volume. Thus far, 2.3 million shares of Community Health Systems exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $37.02-$39.43 after having opened the day at $38.64 as compared to the previous trading day's close of $39.42.

Community Health Systems, Inc., together with its subsidiaries, provides general and specialized hospital healthcare services to patients in the United States. Community Health Systems has a market cap of $4.6 billion and is part of the health care sector. Shares are up 0.4% year-to-date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Community Health Systems a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Community Health Systems as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Community Health Systems 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, Catamaran ( CTRX) is down $0.69 (-1.7%) to $40.55 on light volume. Thus far, 687,207 shares of Catamaran exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $40.38-$41.41 after having opened the day at $41.41 as compared to the previous trading day's close of $41.24.

Catamaran Corporation provides pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefits management industry in North America. The company operates in two segments: PBM and HCIT. Catamaran has a market cap of $8.7 billion and is part of the health care sector. Shares are down 13.1% year-to-date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Catamaran a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Catamaran as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Catamaran 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, Intuitive Surgical ( ISRG) is down $5.12 (-1.4%) to $355.18 on average volume. Thus far, 345,621 shares of Intuitive Surgical exchanged hands as compared to its average daily volume of 616,500 shares. The stock has ranged in price between $353.44-$362.24 after having opened the day at $360.25 as compared to the previous trading day's close of $360.30.

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories. Intuitive Surgical has a market cap of $14.0 billion and is part of the health care sector. Shares are down 6.2% year-to-date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Intuitive Surgical a buy, 4 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Intuitive Surgical as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow. Get the full Intuitive Surgical 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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