3 Stocks Pushing The Health Care Sector Lower

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The Health Care sector as a whole closed the day down 0.4% versus the S&P 500, which was unchanged. Laggards within the Health Care sector included Dynatronics ( DYNT), down 7.2%, Natural Alternatives International ( NAII), down 1.8%, Reliv' International ( RELV), down 6.1%, Electromed ( ELMD), down 2.6% and EntreMed ( ENMD), down 4.2%.

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

EntreMed ( ENMD) is one of the companies that pushed the Health Care sector lower today. EntreMed was down $0.08 (4.2%) to $1.72 on heavy volume. Throughout the day, 53,245 shares of EntreMed exchanged hands as compared to its average daily volume of 21,700 shares. The stock ranged in price between $1.67-$1.77 after having opened the day at $1.73 as compared to the previous trading day's close of $1.80.

EntreMed has a market cap of $47.4 million and is part of the drugs industry. Shares are up 7.5% year-to-date as of the close of trading on Monday.

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At the close, Electromed ( ELMD) was down $0.03 (2.6%) to $1.13 on heavy volume. Throughout the day, 42,158 shares of Electromed exchanged hands as compared to its average daily volume of 27,900 shares. The stock ranged in price between $1.10-$1.15 after having opened the day at $1.12 as compared to the previous trading day's close of $1.16.

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy products. Electromed has a market cap of $9.1 million and is part of the drugs industry. Shares are down 67.1% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Electromed a buy, no analysts rate it a sell, and none rate it a hold.

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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.

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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Reliv' International ( RELV) was another company that pushed the Health Care sector lower today. Reliv' International was down $0.12 (6.1%) to $1.93 on light volume. Throughout the day, 4,592 shares of Reliv' International exchanged hands as compared to its average daily volume of 15,200 shares. The stock ranged in price between $1.93-$2.08 after having opened the day at $2.04 as compared to the previous trading day's close of $2.06.

Reliv' International, Inc. develops, manufactures, and markets nutritional supplements that promote basic nutrition, weight loss, athletic performance, digestive health, women's health, anti-aging, and healthy energy. Reliv' International has a market cap of $24.4 million and is part of the drugs industry. Shares are down 26.7% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Reliv' International as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

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Highlights from TheStreet Ratings analysis on RELV go as follows:

  • RELV's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.82 is somewhat weak and could be cause for future problems.
  • The gross profit margin for RELIV INTERNATIONAL INC is currently very high, coming in at 80.04%. Regardless of RELV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.04% trails the industry average.
  • RELV, with its decline in revenue, underperformed when compared the industry average of 0.1%. Since the same quarter one year prior, revenues fell by 23.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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 Personal Products industry. The net income has significantly decreased by 177.4% when compared to the same quarter one year ago, falling from $0.20 million to -$0.15 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 Personal Products industry and the overall market, RELIV INTERNATIONAL 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: Reliv' International Ratings Report

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