3 Stocks Dragging 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 67 points (0.4%) at 16,436 as of Friday, Aug. 8, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,992 issues advancing vs. 961 declining with 169 unchanged.

The Health Services industry currently sits down 0.2% versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the industry include Hanger ( HGR), down 27.5%, Volcano ( VOLC), down 25.6%, Select Medical Holdings ( SEM), down 17.4%, Masimo ( MASI), down 12.0% and Mindray Medical International ( MR), down 2.3%. Top gainers within the industry include Tornier ( TRNX), up 12.9%, Air Methods ( AIRM), up 11.3%, Varian Medical Systems ( VAR), up 1.5%, Grifols ( GRFS), up 1.4% and CareFusion ( CFN), up 1.1%.

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

3. Universal Health Services ( UHS) is one of the companies pushing the Health Services industry lower today. As of noon trading, Universal Health Services is down $1.45 (-1.4%) to $106.00 on average volume. Thus far, 371,351 shares of Universal Health Services exchanged hands as compared to its average daily volume of 825,700 shares. The stock has ranged in price between $105.16-$108.10 after having opened the day at $107.35 as compared to the previous trading day's close of $107.45.

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 $9.8 billion and is part of the health care sector. Shares are up 32.2% year-to-date as of the close of trading on Thursday. Currently there are 12 analysts that 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 solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Universal Health Services 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, Community Health Systems ( CYH) is down $0.79 (-1.6%) to $47.63 on light volume. Thus far, 608,610 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 $47.06-$48.66 after having opened the day at $48.44 as compared to the previous trading day's close of $48.42.

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 $5.6 billion and is part of the health care sector. Shares are up 23.3% year-to-date as of the close of trading on Thursday. Currently there are 13 analysts that 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 robust revenue growth, good cash flow from operations and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk. Get the full Community Health Systems 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, Boston Scientific ( BSX) is down $0.12 (-1.0%) to $12.14 on average volume. Thus far, 7.1 million shares of Boston Scientific exchanged hands as compared to its average daily volume of 11.3 million shares. The stock has ranged in price between $12.03-$12.27 after having opened the day at $12.26 as compared to the previous trading day's close of $12.26.

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. The company operates in three segments: Cardiovascular, Rhythm Management, and MedSurg. Boston Scientific has a market cap of $17.0 billion and is part of the health care sector. Shares are up 2.0% year-to-date as of the close of trading on Thursday. Currently there are 12 analysts that rate Boston Scientific a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Boston Scientific 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 find that the growth in the company's net income has been quite unimpressive. Get the full Boston 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.

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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