3 Stocks Pushing The Health Care Sector Lower

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The Health Care sector as a whole closed the day up 2.0% versus the S&P 500, which was up 1.0%. Laggards within the Health Care sector included Merus Labs International ( MSLI), down 2.0%, American Shared Hospital Services ( AMS), down 4.2%, Oragenics ( OGEN), down 3.2%, Redhill Biopharma ( RDHL), down 2.5% and Cyanotech ( CYAN), down 1.8%.

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

Redhill Biopharma ( RDHL) is one of the companies that pushed the Health Care sector lower today. Redhill Biopharma was down $0.36 (2.5%) to $14.24 on average volume. Throughout the day, 3,289 shares of Redhill Biopharma exchanged hands as compared to its average daily volume of 3,900 shares. The stock ranged in price between $14.16-$14.35 after having opened the day at $14.25 as compared to the previous trading day's close of $14.60.

RedHill Biopharma Ltd., a biopharmaceutical company, acquires and develops late clinical-stage, proprietary formulations, and combinations of existing drugs. Redhill Biopharma has a market cap of $127.6 million and is part of the drugs industry. Shares are up 23.7% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Redhill Biopharma a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Redhill Biopharma as a hold. The company's strengths can be seen in multiple areas, such as its robust 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 find that the growth in the company's earnings per share has not been good.

Highlights from TheStreet Ratings analysis on RDHL go as follows:

  • RDHL's very impressive revenue growth greatly exceeded the industry average of 5.2%. Since the same quarter one year prior, revenues leaped by 175025.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • RDHL 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.
  • Compared to other companies in the Pharmaceuticals industry and the overall market, REDHILL BIOPHARMA LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • REDHILL BIOPHARMA LTD 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. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, REDHILL BIOPHARMA LTD reported poor results of -$1.70 versus -$0.70 in the prior year. For the next year, the market is expecting a contraction of 14.7% in earnings (-$1.95 versus -$1.70).

You can view the full analysis from the report here: Redhill Biopharma Ratings Report

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At the close, Oragenics ( OGEN) was down $0.06 (3.2%) to $1.80 on light volume. Throughout the day, 20,300 shares of Oragenics exchanged hands as compared to its average daily volume of 29,300 shares. The stock ranged in price between $1.70-$1.89 after having opened the day at $1.80 as compared to the previous trading day's close of $1.86.

Oragenics, Inc. focuses on the discovery, development, and commercialization of various technologies associated with oral health, antibiotics, and other general health benefits. Oragenics has a market cap of $70.1 million and is part of the drugs industry. Shares are down 31.0% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Oragenics a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Oragenics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on OGEN 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 Biotechnology industry. The net income has significantly decreased by 54.9% when compared to the same quarter one year ago, falling from -$1.99 million to -$3.08 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 42.27%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 28.57% 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.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, ORAGENICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • ORAGENICS INC's earnings per share declined by 28.6% 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, ORAGENICS INC continued to lose money by earning -$0.57 versus -$0.95 in the prior year. This year, the market expects an improvement in earnings (-$0.37 versus -$0.57).
  • The gross profit margin for ORAGENICS INC is currently very high, coming in at 84.60%. 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 -708.04% is in-line with the industry average.

You can view the full analysis from the report here: Oragenics Ratings Report

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Merus Labs International ( MSLI) was another company that pushed the Health Care sector lower today. Merus Labs International was down $0.03 (2.0%) to $1.53 on light volume. Throughout the day, 1,500 shares of Merus Labs International exchanged hands as compared to its average daily volume of 14,100 shares. The stock ranged in price between $1.53-$1.53 after having opened the day at $1.53 as compared to the previous trading day's close of $1.56.

Merus Labs International Inc., a specialty pharmaceutical company, is engaged in the acquisition and licensing of branded prescription medicines in the United States, Canada, and Europe. Merus Labs International has a market cap of $61.0 million and is part of the drugs industry. Shares are up 9.4% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Merus Labs International as a sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.

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Highlights from TheStreet Ratings analysis on MSLI 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 Pharmaceuticals industry. The net income has significantly decreased by 732.9% when compared to the same quarter one year ago, falling from $0.30 million to -$1.89 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, MERUS LABS INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for MERUS LABS INTERNATIONAL INC is currently very high, coming in at 84.29%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MSLI's net profit margin of -30.14% significantly underperformed when compared to the industry average.
  • MSLI's debt-to-equity ratio of 0.79 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.13 is sturdy.
  • MERUS LABS INTERNATIONAL INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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, MERUS LABS INTERNATIONAL INC continued to lose money by earning -$0.06 versus -$0.70 in the prior year.

You can view the full analysis from the report here: Merus Labs International Ratings Report

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