CTRX, TMO And BAX, 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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 55 points (0.3%) at 16,661 as of Tuesday, May 27, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,943 issues advancing vs. 1,024 declining with 173 unchanged.

The Health Services industry currently sits up 1.2% versus the S&P 500, which is up 0.5%. On the negative front, top decliners within the industry include Analogic ( ALOG), down 11.8%, Community Health Systems ( CYH), down 2.2%, Tenet Healthcare ( THC), down 2.1%, ResMed ( RMD), down 1.2% and Universal Health Services ( UHS), down 0.8%. Top gainers within the industry include Icon ( ICLR), up 3.8%, WellCare Health Plans ( WCG), up 3.5%, Centene ( CNC), up 3.5%, Parexel International ( PRXL), up 3.0% and Varian Medical Systems ( VAR), up 2.1%.

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

3. Catamaran ( CTRX) is one of the companies pushing the Health Services industry lower today. As of noon trading, Catamaran is down $0.71 (-1.6%) to $43.35 on light volume. Thus far, 587,258 shares of Catamaran exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $43.20-$44.00 after having opened the day at $43.86 as compared to the previous trading day's close of $44.06.

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 $9.1 billion and is part of the health care sector. Shares are down 7.2% year-to-date as of the close of trading on Friday. 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, good cash flow from operations and compelling growth in net income. 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.

2. As of noon trading, Thermo Fisher Scientific ( TMO) is down $0.69 (-0.6%) to $115.05 on light volume. Thus far, 711,423 shares of Thermo Fisher Scientific exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $114.92-$116.25 after having opened the day at $116.21 as compared to the previous trading day's close of $115.74.

Thermo Fisher Scientific Inc. provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacturing, analysis, discovery, and diagnostics in the United States and internationally. Thermo Fisher Scientific has a market cap of $46.2 billion and is part of the health care sector. Shares are up 3.9% year-to-date as of the close of trading on Friday. Currently there are 13 analysts that rate Thermo Fisher Scientific a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Thermo Fisher Scientific as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Thermo Fisher Scientific 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, Baxter International ( BAX) is down $0.49 (-0.7%) to $74.08 on light volume. Thus far, 687,286 shares of Baxter International exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $73.95-$74.77 after having opened the day at $74.74 as compared to the previous trading day's close of $74.57.

Baxter International Inc. develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney diseases, trauma, and other chronic and acute medical conditions. Baxter International has a market cap of $40.5 billion and is part of the health care sector. Shares are up 7.2% year-to-date as of the close of trading on Friday. Currently there are 4 analysts that rate Baxter International a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Baxter International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. 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 Baxter International 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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