BAX, COV And MDT, Pushing 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.

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 8 points (0.0%) at 17,140 as of Wednesday, Sept. 17, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,738 issues advancing vs. 1,242 declining with 174 unchanged.

The Health Services industry currently sits up 0.3% versus the S&P 500, which is unchanged. A company within the industry that fell today was Smith & Nephew ( SNN), up 1.4%.

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 $2.12 (-2.8%) to $72.87 on heavy volume. Thus far, 2.5 million shares of Baxter International exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $72.79-$74.50 after having opened the day at $74.50 as compared to the previous trading day's close of $74.99.

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 $40.4 billion and is part of the health care sector. Shares are up 7.8% year-to-date as of the close of trading on Tuesday. 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, increase in stock price during the past year, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. 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, Covidien ( COV) is down $0.86 (-0.9%) to $90.80 on average volume. Thus far, 2.2 million shares of Covidien exchanged hands as compared to its average daily volume of 4.5 million shares. The stock has ranged in price between $90.69-$91.53 after having opened the day at $91.49 as compared to the previous trading day's close of $91.66.

Covidien plc develops, manufactures, and sells healthcare products for use in clinical and home settings worldwide. Covidien has a market cap of $40.9 billion and is part of the health care sector. Shares are up 34.6% year-to-date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Covidien a buy, no analysts rate it a sell, and 9 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, revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. 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.

1. As of noon trading, Medtronic ( MDT) is down $0.63 (-0.9%) to $65.56 on average volume. Thus far, 3.5 million shares of Medtronic exchanged hands as compared to its average daily volume of 7.5 million shares. The stock has ranged in price between $65.48-$66.30 after having opened the day at $66.26 as compared to the previous trading day's close of $66.19.

Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. It operates through three segments: Cardiac and Vascular Group, Restorative Therapies Group, and Diabetes Group. Medtronic has a market cap of $63.6 billion and is part of the health care sector. Shares are up 15.3% year-to-date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Medtronic a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Medtronic as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Medtronic 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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