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 296.81 points (-1.8%) at 16,584 as of Thursday, July 31, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 306 issues advancing vs. 2,767 declining with 92 unchanged.

The Health Care sector as a whole closed the day down 2.1% versus the S&P 500, which was down 1.8%. Top gainers within the Health Care sector included

Semler Scientific

(

SMLR

), up 2.4%,

Electromed

(

ELMD

), up 7.9%,

Akers Biosciences

(

AKER

), up 3.2%,

Span-America Medical

(

SPAN

), up 1.8% and

Diversicare Healthcare Services

(

DVCR

), up 5.0%.

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

Span-America Medical

(

SPAN

) is one of the companies that pushed the Health Care sector higher today. Span-America Medical was up $0.34 (1.8%) to $19.80 on average volume. Throughout the day, 3,048 shares of Span-America Medical exchanged hands as compared to its average daily volume of 3,200 shares. The stock ranged in a price between $19.53-$19.90 after having opened the day at $19.53 as compared to the previous trading day's close of $19.46.

Span-America Medical Systems, Inc. manufactures and distributes various therapeutic support surfaces and related products for the medical, consumer, and industrial markets primarily in the United States and Canada. The company operates in two segments, Medical and Custom Products. Span-America Medical has a market cap of $58.2 million and is part of the health services industry. Shares are down 6.6% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Span-America Medical 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

Span-America Medical

as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from TheStreet Ratings analysis on SPAN go as follows:

  • SPAN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.31, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 221.49% to $1.08 million when compared to the same quarter last year. In addition, SPAN-AMERICA MEDICAL SYS INC has also vastly surpassed the industry average cash flow growth rate of -17.69%.
  • 37.90% is the gross profit margin for SPAN-AMERICA MEDICAL SYS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.05% trails the industry average.
  • SPAN, with its decline in revenue, underperformed when compared the industry average of 8.7%. Since the same quarter one year prior, revenues fell by 11.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here:

Span-America Medical 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,

Akers Biosciences

(

AKER

) was up $0.12 (3.2%) to $3.83 on light volume. Throughout the day, 8,826 shares of Akers Biosciences exchanged hands as compared to its average daily volume of 13,600 shares. The stock ranged in a price between $3.70-$3.84 after having opened the day at $3.84 as compared to the previous trading day's close of $3.71.

Akers Biosciences has a market cap of $18.4 million and is part of the health services industry. Shares are down 45.3% year-to-date as of the close of trading on Wednesday.

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

Highlights from TheStreet Ratings analysis on AKER go as follows:

You can view the full analysis from the report here:

Akers Biosciences 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.

Electromed

(

ELMD

) was another company that pushed the Health Care sector higher today. Electromed was up $0.11 (7.9%) to $1.50 on light volume. Throughout the day, 13,168 shares of Electromed exchanged hands as compared to its average daily volume of 25,500 shares. The stock ranged in a price between $1.34-$1.50 after having opened the day at $1.34 as compared to the previous trading day's close of $1.39.

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy products. Electromed has a market cap of $11.4 million and is part of the health services industry. Shares are down 59.1% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Electromed a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Electromed as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on ELMD go as follows:

  • ELECTROMED INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, ELECTROMED INC swung to a loss, reporting -$0.16 versus $0.02 in the prior year. For the next year, the market is expecting a contraction of 18.8% in earnings (-$0.19 versus -$0.16).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income has significantly decreased by 132.9% when compared to the same quarter one year ago, falling from -$0.43 million to -$1.00 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ELECTROMED INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ELECTROMED INC is rather high; currently it is at 68.31%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ELMD's net profit margin of -25.37% significantly underperformed when compared to the industry average.
  • Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

You can view the full analysis from the report here:

Electromed 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.