3 Stocks Underperforming Today 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 37 points (0.2%) at 16,943 as of Wednesday, July 9, 2014, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,468 issues advancing vs. 1,471 declining with 161 unchanged.

The Health Services industry currently is unchanged today versus the S&P 500, which is up 0.3%. A company within the industry that fell today was Agilent Technologies ( A), up 0.7%. Top gainers within the industry include Opko Health ( OPK), up 2.3%, Cooper Companies ( COO), up 1.7%, Universal Health Services ( UHS), up 0.7%, Edwards Lifesciences ( EW), up 0.7% and Smith & Nephew ( SNN), up 0.6%.

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

3. Covance ( CVD) is one of the companies pushing the Health Services industry lower today. As of noon trading, Covance is down $1.06 (-1.2%) to $84.92 on average volume. Thus far, 246,159 shares of Covance exchanged hands as compared to its average daily volume of 567,100 shares. The stock has ranged in price between $84.64-$86.24 after having opened the day at $85.96 as compared to the previous trading day's close of $85.98.

Covance Inc., a drug development services company, provides a range of early-stage and late-stage product development services to the pharmaceutical and biotechnology industries worldwide. It operates in two segments, Early Development and Late-Stage Development. Covance has a market cap of $5.0 billion and is part of the health care sector. Shares are down 2.4% year-to-date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Covance a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Covance 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, reasonable valuation levels, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Covance 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, St Jude Medical ( STJ) is down $0.35 (-0.5%) to $69.88 on light volume. Thus far, 500,249 shares of St Jude Medical exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $69.63-$70.42 after having opened the day at $70.23 as compared to the previous trading day's close of $70.23.

St. Jude Medical, Inc. develops, manufactures and distributes medical devices for cardiac rhythm management, cardiovascular, and atrial fibrillation therapy areas worldwide. It operates in two divisions, Implantable Electronic Systems, and Cardiovascular and Ablation Technologies. St Jude Medical has a market cap of $20.0 billion and is part of the health care sector. Shares are up 13.4% year-to-date as of the close of trading on Tuesday. Currently there are 14 analysts that rate St Jude Medical a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates St Jude Medical as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full St Jude Medical Ratings Report now.

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1. As of noon trading, Intuitive Surgical ( ISRG) is down $2.25 (-0.6%) to $383.67 on light volume. Thus far, 189,009 shares of Intuitive Surgical exchanged hands as compared to its average daily volume of 540,500 shares. The stock has ranged in price between $381.76-$388.73 after having opened the day at $386.25 as compared to the previous trading day's close of $385.92.

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories. Intuitive Surgical has a market cap of $15.1 billion and is part of the health care sector. Shares are up 0.5% year-to-date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Intuitive Surgical a buy, 3 analysts rate it a sell, and 8 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, expanding profit margins and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. 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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