3 Health Services 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.

All three major indices are trading down today with the

Dow Jones Industrial Average

(

^DJI

) trading down 31.44 points (-0.2%) at 16,974 as of Wednesday, Oct. 29, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,337 issues advancing vs. 1,766 declining with 127 unchanged.

The Health Services industry as a whole closed the day down 0.1% versus the S&P 500, which was down 0.1%. Top gainers within the Health Services industry included

Semler Scientific

(

SMLR

), up 2.4%,

SunLink Health Systems

(

SSY

), up 6.9%,

Vision-Sciences

(

VSCI

), up 11.3%,

Neovasc

(

NVCN

), up 4.8% and

Response Genetics

(

RGDX

), up 4.6%.

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

Response Genetics

(

RGDX

) is one of the companies that pushed the Health Services industry higher today. Response Genetics was up $0.03 (4.6%) to $0.68 on average volume. Throughout the day, 114,543 shares of Response Genetics exchanged hands as compared to its average daily volume of 93,200 shares. The stock ranged in a price between $0.65-$0.78 after having opened the day at $0.65 as compared to the previous trading day's close of $0.65.

Response Genetics, Inc., a life science company, is engaged in the research, development, marketing, and sale of pharmacogenomic tests for use in the treatment of cancer primarily in the United States, Asia, and Europe. Response Genetics has a market cap of $26.3 million and is part of the health care sector. Shares are down 44.0% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Response Genetics 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 Response Genetics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on RGDX go as follows:

  • 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 Life Sciences Tools & Services industry. The net income has significantly decreased by 142.0% when compared to the same quarter one year ago, falling from -$1.30 million to -$3.14 million.
  • 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 Life Sciences Tools & Services industry and the overall market, RESPONSE GENETICS INC'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 -$3.18 million or 63.03% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 68.60%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% compared to the year-earlier 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.
  • RESPONSE GENETICS 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. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, RESPONSE GENETICS INC continued to lose money by earning -$0.24 versus -$0.31 in the prior year.

You can view the full analysis from the report here:

Response Genetics 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,

Neovasc

(

NVCN

) was up $0.27 (4.8%) to $5.90 on average volume. Throughout the day, 8,447 shares of Neovasc exchanged hands as compared to its average daily volume of 10,600 shares. The stock ranged in a price between $5.59-$5.95 after having opened the day at $5.66 as compared to the previous trading day's close of $5.63.

Neovasc has a market cap of $301.3 million and is part of the health care sector. Shares are up 49.2% 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.

Vision-Sciences

(

VSCI

) was another company that pushed the Health Services industry higher today. Vision-Sciences was up $0.11 (11.3%) to $1.08 on average volume. Throughout the day, 33,379 shares of Vision-Sciences exchanged hands as compared to its average daily volume of 39,600 shares. The stock ranged in a price between $0.89-$1.08 after having opened the day at $0.90 as compared to the previous trading day's close of $0.97.

Vision-Sciences, Inc., through its subsidiaries, designs, develops, manufactures, and markets endoscopy products. It operates through Medical and Industrial segments. Vision-Sciences has a market cap of $45.5 million and is part of the health care sector. Shares are down 3.0% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Vision-Sciences a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Vision-Sciences 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 VSCI go as follows:

  • In its most recent trading session, VSCI 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.
  • 35.05% is the gross profit margin for VISION-SCIENCES 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 -52.69% is in-line with the industry average.
  • Net operating cash flow has increased to -$0.95 million or 33.40% when compared to the same quarter last year. In addition, VISION-SCIENCES INC has also vastly surpassed the industry average cash flow growth rate of -50.70%.
  • VISION-SCIENCES INC has improved earnings per share by 20.0% 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 two years. During the past fiscal year, VISION-SCIENCES INC continued to lose money by earning -$0.16 versus -$0.22 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Equipment & Supplies industry average. The net income increased by 18.8% when compared to the same quarter one year prior, going from -$2.43 million to -$1.98 million.

You can view the full analysis from the report here:

Vision-Sciences 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.