UnitedHealth Group Inc (UNH): Today's Featured Health Services Laggard

Tickers in this article: UNH

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

UnitedHealth Group ( UNH) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.7%. By the end of trading, UnitedHealth Group fell $0.66 (-1.1%) to $61.73 on average volume. Throughout the day, 5,098,954 shares of UnitedHealth Group exchanged hands as compared to its average daily volume of 6,349,800 shares. The stock ranged in price between $61.55-$62.48 after having opened the day at $62.30 as compared to the previous trading day's close of $62.39. Other companies within the Health Services industry that declined today were: Unilife Corporation ( UNIS), down 11.4%, Hooper Holmes ( HH), down 11.3%, Stereotaxis ( STXS), down 10.8% and Arrhythmia Research Technology ( HRT), down 8.4%.

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UnitedHealth Group Incorporated operates as a diversified health and well-being company in the United States. UnitedHealth Group has a market cap of $64.2 billion and is part of the health care sector. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are up 16.0% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate UnitedHealth Group a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates UnitedHealth Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, TearLab Corpoartion ( TEAR), down 17.3%, Escalon Medical Corporation ( ESMC), down 13.2%, Nanosphere ( NSPH), down 11.5% and Invacare Corporation ( IVC), down 8.9% , were all gainers within the health services industry with Abbott Laboratories ( ABT) being today's featured health services industry leader.

For investors not wanting singular stock exposure, 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).