3 Stocks Pushing The Health Services Industry Lower - TheStreet

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

Electromed

(

ELMD

), down 5.6%,

USMD Holdings

(

USMD

), down 4.5%,

American Shared Hospital Services

(

AMS

), down 2.5%,

Misonix

(

MSON

), down 5.1% and

Vision-Sciences Inc (DE

(

VSCI

), down 3.8%.

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

Vision-Sciences Inc (DE

(

VSCI

) is one of the companies that pushed the Health Services industry lower today. Vision-Sciences Inc (DE was down $0.04 (3.8%) to $1.02 on light volume. Throughout the day, 63,810 shares of Vision-Sciences Inc (DE exchanged hands as compared to its average daily volume of 94,000 shares. The stock ranged in price between $1.02-$1.06 after having opened the day at $1.03 as compared to the previous trading day's close of $1.06.

Vision-Sciences, Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of endoscopy products. The company operates in two segments, Medical and Industrial. Vision-Sciences Inc (DE has a market cap of $49.9 million and is part of the technology sector. Shares are up 6.0% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Vision-Sciences Inc (DE

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, generally disappointing historical performance in the stock itself and unimpressive growth in net income.

Highlights from TheStreet Ratings analysis on VSCI go as follows:

  • The gross profit margin for VISION-SCIENCES INC is currently lower than what is desirable, coming in at 31.02%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -48.08% is significantly below that of the industry average.
  • 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. This company's share value has not moved any higher or lower since its value 12 months ago, and we feel the risks associated with investing in this company will outweigh any potential future gains.
  • The change in net income from the same quarter one year ago has exceeded that of the Health Care Equipment & Supplies industry average, but is less than that of the S&P 500. The net income has decreased by 15.8% when compared to the same quarter one year ago, dropping from -$2.07 million to -$2.40 million.
  • VISION-SCIENCES INC's earnings per share declined by 25.0% in the most recent quarter compared to 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, VISION-SCIENCES INC continued to lose money by earning -$0.16 versus -$0.22 in the prior year.
  • Net operating cash flow has increased to -$1.37 million or 44.79% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 4.94%.

You can view the full analysis from the report here:

Vision-Sciences Inc (DE Ratings Report

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At the close,

Misonix

(

MSON

) was down $0.34 (5.1%) to $6.40 on heavy volume. Throughout the day, 16,765 shares of Misonix exchanged hands as compared to its average daily volume of 9,100 shares. The stock ranged in price between $6.15-$6.69 after having opened the day at $6.50 as compared to the previous trading day's close of $6.74.

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 $49.3 million and is part of the technology sector. Shares are up 19.8% year-to-date as of the close of trading on Tuesday.

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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 2.9%. 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).
  • MSON has underperformed the S&P 500 Index, declining 6.83% 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.
  • 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

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Electromed

(

ELMD

) was another company that pushed the Health Services industry lower today. Electromed was down $0.06 (5.6%) to $1.07 on average volume. Throughout the day, 30,815 shares of Electromed exchanged hands as compared to its average daily volume of 27,200 shares. The stock ranged in price between $1.06-$1.13 after having opened the day at $1.13 as compared to the previous trading day's close of $1.13.

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy products. Electromed has a market cap of $9.4 million and is part of the technology sector. Shares are down 65.9% year-to-date as of the close of trading on Tuesday. 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 disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on ELMD go as follows:

  • 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.
  • Net operating cash flow has significantly decreased to $0.39 million or 64.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, ELMD 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.
  • ELMD, with its decline in revenue, underperformed when compared the industry average of 2.9%. Since the same quarter one year prior, revenues slightly dropped by 9.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • ELECTROMED INC has improved earnings per share by 40.0% 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, ELECTROMED INC swung to a loss, reporting -$0.16 versus $0.02 in the prior year. This year, the market expects an improvement in earnings (-$0.07 versus -$0.16).

You can view the full analysis from the report here:

Electromed Ratings Report

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