3 Health Services Stocks On The Rise

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 125 points (-0.7%) at 16,959 as of Friday, July 25, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 982 issues advancing vs. 1,968 declining with 163 unchanged.

The Health Services industry currently sits down 0.4% versus the S&P 500, which is down 0.5%. Top gainers within the industry include Tenet Healthcare ( THC), up 6.0%, and Grifols ( GRFS), up 0.9%. On the negative front, top decliners within the industry include WellCare Health Plans ( WCG), down 20.3%, Centene ( CNC), down 6.5%, Intuitive Surgical ( ISRG), down 1.8%, Boston Scientific ( BSX), down 1.5% and UnitedHealth Group ( UNH), down 1.2%.

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

3. Align Technology ( ALGN) is one of the companies pushing the Health Services industry higher today. As of noon trading, Align Technology is up $3.20 (6.0%) to $56.43 on heavy volume. Thus far, 1.0 million shares of Align Technology exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $55.00-$56.86 after having opened the day at $55.77 as compared to the previous trading day's close of $53.23.

Align Technology, Inc. operates as a medical device company primarily in the United States and internationally. Align Technology has a market cap of $4.3 billion and is part of the health care sector. Shares are down 6.8% year-to-date as of the close of trading on Thursday. Currently there are 6 analysts who rate Align Technology a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Align Technology 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, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Align Technology Ratings Report now.

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2. As of noon trading, Universal Health Services ( UHS) is up $6.59 (6.8%) to $104.13 on heavy volume. Thus far, 1.8 million shares of Universal Health Services exchanged hands as compared to its average daily volume of 755,000 shares. The stock has ranged in price between $103.67-$108.80 after having opened the day at $105.00 as compared to the previous trading day's close of $97.54.

Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. Universal Health Services has a market cap of $8.9 billion and is part of the health care sector. Shares are up 20.0% year-to-date as of the close of trading on Thursday. Currently there are 11 analysts who rate Universal Health Services a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Universal Health Services as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Universal Health Services Ratings Report now.

3x UPSIDE POTENTIAL: 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, Community Health Systems ( CYH) is up $1.59 (3.5%) to $47.49 on average volume. Thus far, 1.4 million shares of Community Health Systems exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $47.07-$48.34 after having opened the day at $47.52 as compared to the previous trading day's close of $45.90.

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 $5.3 billion and is part of the health care sector. Shares are up 16.9% year-to-date as of the close of trading on Thursday. Currently there are 12 analysts who rate Community Health Systems a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Community Health Systems as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full Community Health Systems Ratings Report now.

3x UPSIDE POTENTIAL: 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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