3 Stocks Dragging In The Health Services Industry

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 87 points (0.5%) at 16,606 as of Thursday, May 8, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,938 issues advancing vs. 1,065 declining with 159 unchanged.

The Health Services industry currently sits up 0.3% versus the S&P 500, which is up 0.5%. On the negative front, top decliners within the industry include Humana ( HUM), down 1.7%, WellPoint ( WLP), down 0.6% and Fresenius Medical Care AG & Co. KGaA ( FMS), down 0.6%. Top gainers within the industry include Novadaq Technologies ( NVDQ), up 12.0%, CR Bard ( BCR), up 1.8%, Intuitive Surgical ( ISRG), up 1.7%, Becton Dickinson ( BDX), up 1.6% and Boston Scientific ( BSX), up 1.2%.

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

3. Kindred Healthcare ( KND) is one of the companies pushing the Health Services industry lower today. As of noon trading, Kindred Healthcare is down $1.41 (-5.9%) to $22.40 on heavy volume. Thus far, 436,044 shares of Kindred Healthcare exchanged hands as compared to its average daily volume of 538,100 shares. The stock has ranged in price between $21.87-$23.13 after having opened the day at $22.87 as compared to the previous trading day's close of $23.81.

Kindred Healthcare, Inc. provides healthcare services in the United States. It operates in four divisions: Hospital, Nursing Center, Rehabilitation, and Care Management. Kindred Healthcare has a market cap of $1.3 billion and is part of the health care sector. Shares are up 20.6% year-to-date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Kindred Healthcare a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates Kindred Healthcare 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 growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow. Get the full Kindred Healthcare 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, Insulet ( PODD) is down $2.24 (-6.3%) to $33.15 on heavy volume. Thus far, 956,451 shares of Insulet exchanged hands as compared to its average daily volume of 628,300 shares. The stock has ranged in price between $32.33-$35.00 after having opened the day at $34.35 as compared to the previous trading day's close of $35.39.

Insulet Corporation develops, manufactures, and sells insulin infusion systems for people with insulin-dependent diabetes in the United States. Insulet has a market cap of $2.0 billion and is part of the health care sector. Shares are down 4.6% year-to-date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Insulet a buy, 2 analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Insulet 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 Insulet 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 $0.43 (-0.6%) to $67.35 on light volume. Thus far, 300,230 shares of DaVita HealthCare Partners exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $67.33-$68.17 after having opened the day at $67.79 as compared to the previous trading day's close of $67.78.

DaVita HealthCare Partners Inc. provides kidney dialysis services for patients suffering from chronic kidney failure or end stage renal disease. It operates kidney dialysis centers and provides related lab services primarily in outpatient dialysis centers and in contracted hospitals. DaVita HealthCare Partners has a market cap of $14.4 billion and is part of the health care sector. Shares are up 7.0% 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 increase in stock price during the past year, 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 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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