3 Health Services Stocks Pushing Industry Growth - 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 traded up today The three major indices are trading lower today with the

Dow Jones Industrial Average

(

^DJI

) trading up 118 points (0.7%) at 16,519 as of Wednesday, May 7, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,991 issues advancing vs. 1,077 declining with 137 unchanged.

The Health Services industry as a whole closed the day down 0.7% versus the S&P 500, which was up 0.6%. Top gainers within the Health Services industry included

Misonix

(

MSON

), up 2.5%,

Hooper Holmes

(

HH

), up 3.3%,

Bovie Medical

(

BVX

), up 2.6%,

LipoScience

(

LPDX

), up 1.9% and

Edap TMS

(

EDAP

), up 1.6%.

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

Bovie Medical

(

BVX

) is one of the companies that pushed the Health Services industry higher today. Bovie Medical was up $0.10 (2.6%) to $3.99 on average volume. Throughout the day, 35,844 shares of Bovie Medical exchanged hands as compared to its average daily volume of 38,000 shares. The stock ranged in a price between $3.70-$4.00 after having opened the day at $3.90 as compared to the previous trading day's close of $3.89.

Bovie Medical Corporation, an energy-based medical device company, develops, manufactures, and markets a range of electrosurgical products and technologies, and related medical products worldwide. Bovie Medical has a market cap of $72.7 million and is part of the health care sector. Shares are up 89.6% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Bovie Medical a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Bovie Medical as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on BVX go as follows:

  • Compared to its closing price of one year ago, BVX's share price has jumped by 27.95%, exceeding the performance of the broader market during that same time frame. Although BVX had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • BVX's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.40, which clearly demonstrates the ability to cover short-term cash needs.
  • 45.28% is the gross profit margin for BOVIE MEDICAL CORP 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 -40.29% is in-line with the industry average.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, BOVIE MEDICAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$1.35 million or 12345.45% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here:

Bovie 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,

Hooper Holmes

(

HH

) was up $0.02 (3.3%) to $0.62 on light volume. Throughout the day, 20,671 shares of Hooper Holmes exchanged hands as compared to its average daily volume of 231,800 shares. The stock ranged in a price between $0.58-$0.64 after having opened the day at $0.59 as compared to the previous trading day's close of $0.60.

Hooper Holmes has a market cap of $41.4 million and is part of the health care sector. Shares are up 10.8% year-to-date as of the close of trading on Tuesday.

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 HH go as follows:

You can view the full analysis from the report here:

Hooper Holmes 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.

Misonix

(

MSON

) was another company that pushed the Health Services industry higher today. Misonix was up $0.15 (2.5%) to $6.14 on average volume. Throughout the day, 11,558 shares of Misonix exchanged hands as compared to its average daily volume of 10,000 shares. The stock ranged in a price between $5.77-$6.14 after having opened the day at $6.01 as compared to the previous trading day's close of $5.99.

Misonix, Inc. designs, develops, manufactures, and markets minimally invasive ultrasonic surgical device products for spine surgery, skull-based surgery, neurosurgery, wound debridement, cosmetic surgery, laparoscopic surgery, and other surgical applications. Misonix has a market cap of $43.8 million and is part of the health care sector. Shares are up 7.6% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Misonix a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Misonix 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 increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on MSON go as follows:

  • The revenue growth came in higher than the industry average of 2.8%. Since the same quarter one year prior, revenues rose by 23.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MSON 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 3.56, which clearly demonstrates the ability to cover short-term cash needs.
  • MISONIX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MISONIX INC reported poor results of -$0.40 versus -$0.09 in the prior year. This year, the market expects an improvement in earnings (-$0.01 versus -$0.40).
  • In its most recent trading session, MSON has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, MISONIX INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here:

Misonix 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.