BAX, WLP And COV, 3 Health Services Stocks Pushing The Industry Lower

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%. 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 lower today:

3. Baxter International ( BAX) is one of the companies pushing the Health Services industry lower today. As of noon trading, Baxter International is down $0.49 (-0.6%) to $76.51 on light volume. Thus far, 729,321 shares of Baxter International exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $76.22-$77.17 after having opened the day at $77.07 as compared to the previous trading day's close of $77.00.

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 $41.7 billion and is part of the health care sector. Shares are up 10.7% year-to-date as of the close of trading on Thursday. 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, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow. 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.

2. As of noon trading, WellPoint ( WLP) is down $1.61 (-1.4%) to $113.64 on average volume. Thus far, 1.2 million shares of WellPoint exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $111.12-$113.87 after having opened the day at $112.43 as compared to the previous trading day's close of $115.25.

WellPoint, Inc., a health benefits company, through its subsidiaries, provides a range of medical products in the United States. The company offers a spectrum of network-based managed care health benefit plans to large and small employer, individual, Medicaid, and senior markets. WellPoint has a market cap of $32.3 billion and is part of the health care sector. Shares are up 24.7% year-to-date as of the close of trading on Thursday. Currently there are 7 analysts that rate WellPoint a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates WellPoint as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full WellPoint 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, Covidien ( COV) is down $0.50 (-0.6%) to $88.28 on light volume. Thus far, 1.5 million shares of Covidien exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $87.92-$89.19 after having opened the day at $88.51 as compared to the previous trading day's close of $88.78.

Covidien plc develops, manufactures, and sells healthcare products for use in clinical and home settings worldwide. Covidien has a market cap of $40.3 billion and is part of the health care sector. Shares are up 30.8% year-to-date as of the close of trading on Thursday. Currently there are 6 analysts that rate Covidien a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Covidien 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 notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Covidien 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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