3 Stocks Pushing The Health Care Sector Lower

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The Health Care sector as a whole closed the day up 1.4% versus the S&P 500, which was up 0.3%. Laggards within the Health Care sector included Reliv' International ( RELV), down 1.6%, American Shared Hospital Services ( AMS), down 1.9%, EntreMed ( ENMD), down 2.7%, SunLink Health Systems ( SSY), down 7.4% and Semler Scientific ( SMLR), down 18.9%.

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

Grifols ( GRFS) is one of the companies that pushed the Health Care sector lower today. Grifols was down $0.69 (1.6%) to $41.59 on light volume. Throughout the day, 255,766 shares of Grifols exchanged hands as compared to its average daily volume of 611,400 shares. The stock ranged in price between $41.32-$42.10 after having opened the day at $41.81 as compared to the previous trading day's close of $42.28.

Grifols, S.A., a specialty biopharmaceutical company, develops, manufactures, and distributes a range of plasma derivative products primarily in the European Union, Spain, the United States, Canada, and internationally. Grifols has a market cap of $14.4 billion and is part of the drugs industry. Shares are up 16.2% year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts who rate Grifols a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Grifols as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from TheStreet Ratings analysis on GRFS go as follows:

  • Powered by its strong earnings growth of 52.38% and other important driving factors, this stock has surged by 51.98% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GRFS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • GRIFOLS SA reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GRIFOLS SA increased its bottom line by earning $1.39 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($2.67 versus $1.39).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Biotechnology industry average. The net income increased by 35.3% when compared to the same quarter one year prior, rising from $84.76 million to $114.70 million.
  • GRFS's revenue growth trails the industry average of 25.7%. Since the same quarter one year prior, revenues slightly increased by 7.6%. Growth in the company's revenue appears to have helped boost the earnings per share.

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

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At the close, EntreMed ( ENMD) was down $0.05 (2.7%) to $1.82 on light volume. Throughout the day, 6,612 shares of EntreMed exchanged hands as compared to its average daily volume of 21,700 shares. The stock ranged in price between $1.81-$1.90 after having opened the day at $1.87 as compared to the previous trading day's close of $1.87.

EntreMed has a market cap of $51.4 million and is part of the drugs industry. Shares are up 13.7% year-to-date as of the close of trading on Wednesday.

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Highlights from TheStreet Ratings analysis on ENMD go as follows:

You can view the full analysis from the report here: EntreMed 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.

Reliv' International ( RELV) was another company that pushed the Health Care sector lower today. Reliv' International was down $0.03 (1.6%) to $1.87 on light volume. Throughout the day, 4,247 shares of Reliv' International exchanged hands as compared to its average daily volume of 15,500 shares. The stock ranged in price between $1.87-$1.91 after having opened the day at $1.91 as compared to the previous trading day's close of $1.90.

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 $25.2 million and is part of the drugs industry. Shares are down 32.4% year-to-date as of the close of trading on Wednesday.

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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