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.

The Drugs industry as a whole closed the day down 1.2% versus the S&P 500, which was up 0.7%. Laggards within the Drugs industry included

Tianyin Pharmaceutical

(

TPI

), down 6.8%,

BioPharmX

(

BPMX

), down 5.5%,

Cyanotech

(

CYAN

), down 2.3%,

Aptose Biosciences

(

APTO

), down 3.2% and

Onconova Therapeutics

(

ONTX

), down 1.9%.

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

Sanofi

(

SNY

) is one of the companies that pushed the Drugs industry lower today. Sanofi was down $1.17 (2.2%) to $52.64 on light volume. Throughout the day, 1,169,508 shares of Sanofi exchanged hands as compared to its average daily volume of 1,691,800 shares. The stock ranged in price between $52.64-$54.04 after having opened the day at $53.72 as compared to the previous trading day's close of $53.81.

Sanofi researches, develops, and markets various therapeutic solutions. Sanofi has a market cap of $140.7 billion and is part of the health care sector. Shares are up 18.0% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Sanofi a buy, no analysts rate it a sell, and 3 rate it a hold.

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TheStreet Ratings rates

Sanofi

as a

buy

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on SNY go as follows:

  • The gross profit margin for SANOFI is rather high; currently it is at 61.71%. 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 11.50% trails the industry average.
  • After a year of stock price fluctuations, the net result is that SNY's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • SANOFI's earnings per share declined by 25.0% 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, SANOFI increased its bottom line by earning $2.01 versus $1.90 in the prior year. This year, the market expects an improvement in earnings ($3.16 versus $2.01).
  • SNY, with its decline in revenue, slightly underperformed the industry average of 4.5%. Since the same quarter one year prior, revenues fell by 12.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Pharmaceuticals industry average. The net income has significantly decreased by 26.4% when compared to the same quarter one year ago, falling from $1,493.43 million to $1,098.80 million.

You can view the full analysis from the report here:

Sanofi Ratings Report

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At the close,

Onconova Therapeutics

(

ONTX

) was down $0.04 (1.9%) to $2.03 on light volume. Throughout the day, 13,274 shares of Onconova Therapeutics exchanged hands as compared to its average daily volume of 34,300 shares. The stock ranged in price between $2.03-$2.15 after having opened the day at $2.10 as compared to the previous trading day's close of $2.07.

Onconova Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule drug candidates to treat cancer. Onconova Therapeutics has a market cap of $46.0 million and is part of the health care sector. Shares are down 37.1% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Onconova Therapeutics a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates

Onconova Therapeutics

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ONTX go as follows:

  • 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 Biotechnology industry and the overall market, ONCONOVA THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • ONTX'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 54.66%, 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 company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income increased by 33.9% when compared to the same quarter one year prior, rising from -$18.68 million to -$12.34 million.
  • ONTX, with its very weak revenue results, has greatly underperformed against the industry average of 22.0%. Since the same quarter one year prior, revenues plummeted by 74.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • ONCONOVA THERAPEUTICS INC has improved earnings per share by 34.5% 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, ONCONOVA THERAPEUTICS INC reported poor results of -$2.95 versus -$2.29 in the prior year. This year, the market expects an improvement in earnings (-$2.08 versus -$2.95).

You can view the full analysis from the report here:

Onconova Therapeutics Ratings Report

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Aptose Biosciences

(

APTO

) was another company that pushed the Drugs industry lower today. Aptose Biosciences was down $0.14 (3.2%) to $4.34 on light volume. Throughout the day, 5,663 shares of Aptose Biosciences exchanged hands as compared to its average daily volume of 15,000 shares. The stock ranged in price between $4.25-$4.55 after having opened the day at $4.55 as compared to the previous trading day's close of $4.48.

Aptose Biosciences has a market cap of $53.0 million and is part of the health care sector. Shares are down 24.7% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts who rate Aptose Biosciences a buy, no analysts rate it a sell, and none rate it a hold.

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