3 Drugs Stocks Pushing The Industry Higher - TheStreet

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 lower today with the

Dow Jones Industrial Average

(

^DJI

) trading down 55.58 points (-0.3%) at 16,927 as of Tuesday, July 29, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,583 issues advancing vs. 1,391 declining with 165 unchanged.

The Drugs industry as a whole closed the day up 0.8% versus the S&P 500, which was down 0.3%. Top gainers within the Drugs industry included

Tianyin Pharmaceutical

(

TPI

), up 3.0%,

Heat Biologics

(

HTBX

), up 4.4%,

Merus Labs International

(

MSLI

), up 1.7%,

Cleveland BioLabs

(

CBLI

), up 6.5% and

Sophiris Bio

(

SPHS

), up 2.4%.

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

Cleveland BioLabs

(

CBLI

) is one of the companies that pushed the Drugs industry higher today. Cleveland BioLabs was up $0.03 (6.5%) to $0.46 on average volume. Throughout the day, 171,143 shares of Cleveland BioLabs exchanged hands as compared to its average daily volume of 227,000 shares. The stock ranged in a price between $0.43-$0.46 after having opened the day at $0.43 as compared to the previous trading day's close of $0.43.

Cleveland BioLabs, Inc., a biopharmaceutical company, focuses on developing pharmaceuticals designed to address diseases with significant medical need. Cleveland BioLabs has a market cap of $22.9 million and is part of the health care sector. Shares are down 63.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Cleveland BioLabs a buy, no analysts rate it a sell, and 1 rates it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Cleveland BioLabs as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CBLI go as follows:

  • CBLI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 70.70%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The revenue fell significantly faster than the industry average of 36.6%. Since the same quarter one year prior, revenues slightly dropped by 2.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • CLEVELAND BIOLABS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, CLEVELAND BIOLABS INC continued to lose money by earning -$0.39 versus -$0.52 in the prior year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Biotechnology industry average. The net income increased by 83.8% when compared to the same quarter one year prior, rising from -$9.76 million to -$1.59 million.
  • Net operating cash flow has significantly increased by 59.54% to -$2.83 million when compared to the same quarter last year. In addition, CLEVELAND BIOLABS INC has also vastly surpassed the industry average cash flow growth rate of -71.74%.

You can view the full analysis from the report here:

Cleveland BioLabs Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close,

Merus Labs International

(

MSLI

) was up $0.03 (1.7%) to $2.09 on average volume. Throughout the day, 31,883 shares of Merus Labs International exchanged hands as compared to its average daily volume of 33,000 shares. The stock ranged in a price between $2.04-$2.13 after having opened the day at $2.04 as compared to the previous trading day's close of $2.06.

Merus Labs International Inc., a specialty pharmaceutical company, is engaged in the acquisition and licensing of branded prescription medicines in the United States, Canada, and Europe. Merus Labs International has a market cap of $109.6 million and is part of the health care sector. Shares are up 44.0% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Merus Labs International a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Merus Labs International as a

sell

. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from TheStreet Ratings analysis on MSLI go as follows:

  • Net operating cash flow has decreased to $2.93 million or 29.74% when compared to the same quarter last year. Despite a decrease in cash flow MERUS LABS INTERNATIONAL INC is still fairing well by exceeding its industry average cash flow growth rate of -54.80%.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, MERUS LABS INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for MERUS LABS INTERNATIONAL INC is currently very high, coming in at 81.89%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MSLI's net profit margin of -21.74% significantly underperformed when compared to the industry average.
  • MERUS LABS INTERNATIONAL INC has improved earnings per share by 42.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, MERUS LABS INTERNATIONAL INC continued to lose money by earning -$0.05 versus -$0.70 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 36.7% when compared to the same quarter one year prior, rising from -$2.30 million to -$1.46 million.

You can view the full analysis from the report here:

Merus Labs International Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Heat Biologics

(

HTBX

) was another company that pushed the Drugs industry higher today. Heat Biologics was up $0.18 (4.4%) to $4.24 on heavy volume. Throughout the day, 67,021 shares of Heat Biologics exchanged hands as compared to its average daily volume of 12,600 shares. The stock ranged in a price between $4.01-$4.47 after having opened the day at $4.01 as compared to the previous trading day's close of $4.06.

Heat Biologics has a market cap of $26.6 million and is part of the health care sector. Shares are down 41.8% year-to-date as of the close of trading on Monday.

Highlights from TheStreet Ratings analysis on HTBX go as follows:

You can view the full analysis from the report here:

Heat Biologics Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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.