3 Stocks Pushing The Drugs Industry Lower - TheStreet

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The Drugs industry as a whole closed the day up 0.7% versus the S&P 500, which was up 0.4%. Laggards within the Drugs industry included

CymaBay Therapeutics

(

CYMA

), down 1.8%,

Aurinia Pharmaceuticals

(

AUPH

), down 3.0%,

ImmuCell

(

ICCC

), down 5.8%,

Aoxing Pharmaceutical

(

AXN

), down 7.3% and

Celsus Therapeutics

(

CLTX

), down 3.2%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Sagent Pharmaceuticals

(

SGNT

) is one of the companies that pushed the Drugs industry lower today. Sagent Pharmaceuticals was down $1.05 (3.7%) to $27.44 on average volume. Throughout the day, 238,406 shares of Sagent Pharmaceuticals exchanged hands as compared to its average daily volume of 253,900 shares. The stock ranged in price between $27.20-$29.21 after having opened the day at $28.85 as compared to the previous trading day's close of $28.49.

Sagent Pharmaceuticals, Inc., a specialty pharmaceutical company, develops, sources, manufactures, and markets pharmaceutical products, principally injectable-based generic equivalents to branded products in the United States. Sagent Pharmaceuticals has a market cap of $897.0 million and is part of the health care sector. Shares are up 12.2% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Sagent Pharmaceuticals a buy, no analysts rate it a sell, and 6 rate it a hold.

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TheStreet Ratings rates

Sagent Pharmaceuticals

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 solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on SGNT go as follows:

  • The revenue growth came in higher than the industry average of 8.7%. Since the same quarter one year prior, revenues slightly increased by 7.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • SGNT 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 2.96, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to its closing price of one year ago, SGNT's share price has jumped by 25.55%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • 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. In comparison to the other companies in the Pharmaceuticals industry and the overall market, SAGENT PHARMACEUTICALS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for SAGENT PHARMACEUTICALS INC is currently lower than what is desirable, coming in at 28.72%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.94% significantly trails the industry average.

You can view the full analysis from the report here:

Sagent Pharmaceuticals Ratings Report

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At the close,

Aoxing Pharmaceutical

(

AXN

) was down $0.02 (7.3%) to $0.20 on average volume. Throughout the day, 80,440 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 71,900 shares. The stock ranged in price between $0.20-$0.21 after having opened the day at $0.21 as compared to the previous trading day's close of $0.22.

Aoxing Pharmaceutical Company, Inc., a specialty pharmaceutical company, researches, develops, manufactures, and distributes various narcotic, pain-management, and addiction treatment pharmaceutical products primarily in the People's Republic of China. Aoxing Pharmaceutical has a market cap of $14.3 million and is part of the health care sector. Shares are down 13.5% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Aoxing Pharmaceutical

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 AXN go as follows:

  • AXN has underperformed the S&P 500 Index, declining 10.72% from its price level of one year ago. 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.
  • The gross profit margin for AOXING PHARMACEUTICAL CO INC is rather high; currently it is at 58.33%. 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 -71.80% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 68.38% to -$0.56 million when compared to the same quarter last year. In addition, AOXING PHARMACEUTICAL CO INC has also vastly surpassed the industry average cash flow growth rate of -19.99%.
  • AOXING PHARMACEUTICAL CO 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 two years. During the past fiscal year, AOXING PHARMACEUTICAL CO INC continued to lose money by earning -$0.16 versus -$0.34 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 78.4% when compared to the same quarter one year prior, rising from -$10.78 million to -$2.33 million.

You can view the full analysis from the report here:

Aoxing Pharmaceutical 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.

Aurinia Pharmaceuticals

(

AUPH

) was another company that pushed the Drugs industry lower today. Aurinia Pharmaceuticals was down $0.10 (3.0%) to $3.25 on heavy volume. Throughout the day, 18,701 shares of Aurinia Pharmaceuticals exchanged hands as compared to its average daily volume of 4,100 shares. The stock ranged in price between $3.20-$4.35 after having opened the day at $4.28 as compared to the previous trading day's close of $3.35.

Aurinia Pharmaceuticals has a market cap of $104.2 million and is part of the health care sector. Shares are down 0.6% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Aurinia Pharmaceuticals 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.