3 Stocks Pushing The Health Services Industry Lower - TheStreet

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The Health Services industry as a whole was unchanged today versus the S&P 500, which was up 0.1%. Laggards within the Health Services industry included

American Shared Hospital Services

(

AMS

), down 3.2%,

Allied Healthcare Products

(

AHPI

), down 3.4%,

Escalon Medical

(

ESMC

), down 3.2%,

Misonix

(

MSON

), down 2.1% and

Semler Scientific

(

SMLR

), down 7.3%.

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

NxStage Medical

(

NXTM

) is one of the companies that pushed the Health Services industry lower today. NxStage Medical was down $0.22 (1.6%) to $13.58 on light volume. Throughout the day, 160,568 shares of NxStage Medical exchanged hands as compared to its average daily volume of 589,800 shares. The stock ranged in price between $13.32-$13.79 after having opened the day at $13.74 as compared to the previous trading day's close of $13.80.

NxStage Medical, Inc., a medical device company, develops, manufactures, and markets products for the treatment of kidney failure, fluid overload, and related blood treatments and procedures. NxStage Medical has a market cap of $843.2 million and is part of the health care sector. Shares are up 37.3% year-to-date as of the close of trading on Tuesday. Currently there are 4 analysts who rate NxStage Medical a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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TheStreet Ratings rates

NxStage Medical

as a

sell

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

Highlights from TheStreet Ratings analysis on NXTM go as follows:

  • NXSTAGE MEDICAL INC's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, NXSTAGE MEDICAL INC reported poor results of -$0.30 versus -$0.26 in the prior year. For the next year, the market is expecting a contraction of 33.3% in earnings (-$0.40 versus -$0.30).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, NXSTAGE MEDICAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, NXTM 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.
  • The change in net income from the same quarter one year ago has significantly 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 5.6% when compared to the same quarter one year ago, dropping from -$4.99 million to -$5.28 million.
  • 49.19% is the gross profit margin for NXSTAGE MEDICAL 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 -7.30% is in-line with the industry average.

You can view the full analysis from the report here:

NxStage Medical Ratings Report

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At the close,

Misonix

(

MSON

) was down $0.13 (2.1%) to $6.04 on light volume. Throughout the day, 1,845 shares of Misonix exchanged hands as compared to its average daily volume of 9,200 shares. The stock ranged in price between $5.98-$6.09 after having opened the day at $6.09 as compared to the previous trading day's close of $6.17.

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 $43.1 million and is part of the health care sector. Shares are up 5.2% 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 stock price during the past year. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from TheStreet Ratings analysis on MSON go as follows:

  • The revenue growth came in higher than the industry average of 3.3%. 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.
  • The gross profit margin for MISONIX INC is currently very high, coming in at 75.06%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.30% trails the industry average.
  • 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 ($0.02 versus -$0.40).
  • 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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Allied Healthcare Products

(

AHPI

) was another company that pushed the Health Services industry lower today. Allied Healthcare Products was down $0.09 (3.4%) to $2.60 on light volume. Throughout the day, 8,960 shares of Allied Healthcare Products exchanged hands as compared to its average daily volume of 15,200 shares. The stock ranged in price between $2.42-$2.72 after having opened the day at $2.72 as compared to the previous trading day's close of $2.69.

Allied Healthcare Products, Inc. manufactures, markets, and distributes respiratory care products, medical gas equipment, and emergency medical products in Canada, Mexico, Central and South America, Europe, the Middle East, and the Far East. Allied Healthcare Products has a market cap of $19.3 million and is part of the health care sector. Shares are up 5.3% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates

Allied Healthcare Products

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and poor profit margins.

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Highlights from TheStreet Ratings analysis on AHPI go as follows:

  • ALLIED HEALTHCARE PRODS 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ALLIED HEALTHCARE PRODS INC reported poor results of -$0.15 versus -$0.06 in the prior year.
  • 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 91.5% when compared to the same quarter one year ago, falling from -$0.47 million to -$0.90 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ALLIED HEALTHCARE PRODS 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 -$0.73 million or 300.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for ALLIED HEALTHCARE PRODS INC is currently lower than what is desirable, coming in at 25.77%. Regardless of AHPI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AHPI's net profit margin of -10.26% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here:

Allied Healthcare Products 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.