3 Stocks Dragging 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.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 16 points (0.1%) at 16,733 as of Monday, June 2, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,394 issues advancing vs. 1,564 declining with 187 unchanged.

The Health Services industry currently sits down 0.7% versus the S&P 500, which is unchanged. On the negative front, top decliners within the industry include Grifols ( GRFS), down 2.5%, Covidien ( COV), down 0.8% and Abbott Laboratories ( ABT), down 0.6%. A company within the industry that increased today was DaVita HealthCare Partners ( DVA), up 0.9%.

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

3. Fresenius Medical Care AG & Co. KGaA ( FMS) is one of the companies pushing the Health Services industry lower today. As of noon trading, Fresenius Medical Care AG & Co. KGaA is down $0.31 (-0.9%) to $32.77 on light volume. Thus far, 29,324 shares of Fresenius Medical Care AG & Co. KGaA exchanged hands as compared to its average daily volume of 155,000 shares. The stock has ranged in price between $32.71-$32.87 after having opened the day at $32.83 as compared to the previous trading day's close of $33.08.

Fresenius Medical Care AG & Co. KGaA, a kidney dialysis company, provides renal dialysis products and services. Fresenius Medical Care AG & Co. KGaA has a market cap of $20.0 billion and is part of the health care sector. Shares are down 7.0% year-to-date as of the close of trading on Friday. Currently there is 1 analyst that rates Fresenius Medical Care AG & Co. KGaA a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Fresenius Medical Care AG & Co. KGaA as a hold. 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and weak operating cash flow. Get the full Fresenius Medical Care AG & Co. KGaA 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, Smith & Nephew ( SNN) is down $1.56 (-1.8%) to $86.21 on heavy volume. Thus far, 112,651 shares of Smith & Nephew exchanged hands as compared to its average daily volume of 135,800 shares. The stock has ranged in price between $85.99-$86.52 after having opened the day at $86.05 as compared to the previous trading day's close of $87.77.

Smith & Nephew plc develops, manufactures, markets, and sells medical devices in the advanced surgical devices and advanced wound management sectors worldwide. Smith & Nephew has a market cap of $15.6 billion and is part of the health care sector. Shares are up 22.4% year-to-date as of the close of trading on Friday. Currently there are 5 analysts that rate Smith & Nephew a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Smith & Nephew as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Smith & Nephew 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, Express Scripts ( ESRX) is down $1.88 (-2.6%) to $69.59 on average volume. Thus far, 3.0 million shares of Express Scripts exchanged hands as compared to its average daily volume of 5.6 million shares. The stock has ranged in price between $69.02-$71.24 after having opened the day at $70.87 as compared to the previous trading day's close of $71.47.

Express Scripts Holding Company provides a range of pharmacy benefit management (PBM) services primarily in the United States and Canada. The company offers healthcare management and administration services on behalf of its clients. Express Scripts has a market cap of $55.0 billion and is part of the health care sector. Shares are up 1.2% year-to-date as of the close of trading on Friday. Currently there are 15 analysts that rate Express Scripts a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Express Scripts as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Express Scripts 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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