3 Stocks Pushing The Health Services Industry Lower

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 or Stephanie Link.

The Health Services industry as a whole closed the day up 0.3% versus the S&P 500, which was up 0.8%. Laggards within the Health Services industry included American Caresource Holdings ( ANCI), down 3.5%, Pro-Dex ( PDEX), down 2.8%, American Shared Hospital Services ( AMS), down 3.7%, Lakeland Industries ( LAKE), down 2.2% and Escalon Medical ( ESMC), down 3.9%.

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

Conmed ( CNMD) is one of the companies that pushed the Health Services industry lower today. Conmed was down $1.46 (3.1%) to $45.63 on heavy volume. Throughout the day, 723,491 shares of Conmed exchanged hands as compared to its average daily volume of 209,000 shares. The stock ranged in price between $45.30-$47.28 after having opened the day at $47.28 as compared to the previous trading day's close of $47.09.

CONMED Corporation provides surgical devices and equipment for minimally invasive procedures and monitoring. Conmed has a market cap of $1.3 billion and is part of the health care sector. Shares are up 10.8% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Conmed a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Conmed as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on CNMD go as follows:

  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, CNMD has a quick ratio of 1.87, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 211.12% to $17.03 million when compared to the same quarter last year. In addition, CONMED CORP has also vastly surpassed the industry average cash flow growth rate of 5.14%.
  • The gross profit margin for CONMED CORP is rather high; currently it is at 60.50%. 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 4.74% trails the industry average.
  • Compared to its closing price of one year ago, CNMD's share price has jumped by 49.33%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • CONMED CORP's earnings per share declined by 16.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CONMED CORP reported lower earnings of $1.27 versus $1.41 in the prior year. This year, the market expects an improvement in earnings ($1.95 versus $1.27).

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

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At the close, Lakeland Industries ( LAKE) was down $0.16 (2.2%) to $7.02 on light volume. Throughout the day, 5,121 shares of Lakeland Industries exchanged hands as compared to its average daily volume of 7,100 shares. The stock ranged in price between $7.01-$7.25 after having opened the day at $7.25 as compared to the previous trading day's close of $7.18.

Lakeland Industries, Inc., together with its subsidiaries, manufactures and sells safety garments and accessories for the industrial protective clothing market worldwide. Lakeland Industries has a market cap of $38.9 million and is part of the health care sector. Shares are up 36.5% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Lakeland Industries 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, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on LAKE go as follows:

  • LAKELAND INDUSTRIES 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, LAKELAND INDUSTRIES INC swung to a loss, reporting -$4.88 versus $0.21 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 Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 748.8% when compared to the same quarter one year ago, falling from $0.28 million to -$1.84 million.
  • 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 Textiles, Apparel & Luxury Goods industry and the overall market, LAKELAND INDUSTRIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LAKELAND INDUSTRIES INC is rather low; currently it is at 24.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.05% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$3.40 million or 671.81% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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

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American Caresource Holdings ( ANCI) was another company that pushed the Health Services industry lower today. American Caresource Holdings was down $0.10 (3.5%) to $2.80 on heavy volume. Throughout the day, 17,479 shares of American Caresource Holdings exchanged hands as compared to its average daily volume of 6,800 shares. The stock ranged in price between $2.69-$2.81 after having opened the day at $2.81 as compared to the previous trading day's close of $2.90.

American CareSource Holdings, Inc. provides access to a network of ancillary healthcare service providers in the United States. American Caresource Holdings has a market cap of $21.1 million and is part of the health care sector. Shares are up 91.5% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates American Caresource Holdings 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 and poor profit margins.

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Highlights from TheStreet Ratings analysis on ANCI go as follows:

  • AMERICAN CARESOURCE HLDGS's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, AMERICAN CARESOURCE HLDGS reported poor results of -$0.66 versus -$0.54 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 Providers & Services industry. The net income has decreased by 24.7% when compared to the same quarter one year ago, dropping from -$1.15 million to -$1.44 million.
  • 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 Providers & Services industry and the overall market, AMERICAN CARESOURCE HLDGS's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for AMERICAN CARESOURCE HLDGS is currently extremely low, coming in at 1.28%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -28.65% is significantly below that of the industry average.
  • The revenue fell significantly faster than the industry average of 16.7%. Since the same quarter one year prior, revenues fell by 34.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: American Caresource Holdings 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.

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