3 Stocks Pushing The Health Services Industry Lower

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The Health Services industry as a whole closed the day up 0.8% versus the S&P 500, which was up 0.3%. Laggards within the Health Services industry included SunLink Health Systems ( SSY), down 7.4%, Semler Scientific ( SMLR), down 18.9%, AdCare Health Systems ( ADK), down 1.7%, Cesca Therapeutics ( KOOL), down 2.3% and Liberator Medical Holdings ( LBMH), down 4.8%.

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

Liberator Medical Holdings ( LBMH) is one of the companies that pushed the Health Services industry lower today. Liberator Medical Holdings was down $0.17 (4.8%) to $3.39 on heavy volume. Throughout the day, 383,279 shares of Liberator Medical Holdings exchanged hands as compared to its average daily volume of 245,000 shares. The stock ranged in price between $3.22-$3.54 after having opened the day at $3.50 as compared to the previous trading day's close of $3.56.

Liberator Medical Holdings, Inc., together with its subsidiaries, distributes direct-to-consumer durable medical supplies for seniors and others with chronic illness in the United States. Liberator Medical Holdings has a market cap of $189.6 million and is part of the health care sector. Shares are down 13.4% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Liberator Medical Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Liberator Medical Holdings as a buy. 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, notable return on equity, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from TheStreet Ratings analysis on LBMH go as follows:

  • The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 6.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LBMH's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, LBMH has a quick ratio of 1.93, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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. When compared to other companies in the Food & Staples Retailing industry and the overall market, LIBERATOR MEDICAL HLDGS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • LIBERATOR MEDICAL HLDGS INC has improved earnings per share by 33.3% 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. During the past fiscal year, LIBERATOR MEDICAL HLDGS INC increased its bottom line by earning $0.14 versus $0.04 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 56.8% when compared to the same quarter one year prior, rising from $1.35 million to $2.12 million.

You can view the full analysis from the report here: Liberator Medical Holdings Ratings Report

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At the close, Cesca Therapeutics ( KOOL) was down $0.04 (2.3%) to $1.50 on light volume. Throughout the day, 85,145 shares of Cesca Therapeutics exchanged hands as compared to its average daily volume of 569,600 shares. The stock ranged in price between $1.48-$1.54 after having opened the day at $1.50 as compared to the previous trading day's close of $1.53.

Cesca Therapeutics Inc. designs, develops, and commercializes devices and disposable tools for the processing, storage, and administration of cell therapies. Cesca Therapeutics has a market cap of $50.9 million and is part of the health care sector. Shares are up 50.0% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Cesca Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Cesca Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on KOOL 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 65.8% when compared to the same quarter one year ago, falling from -$1.12 million to -$1.86 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 Equipment & Supplies industry and the overall market, CESCA THERAPEUTICS 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 -$1.76 million or 88050.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • KOOL, with its decline in revenue, underperformed when compared the industry average of 2.9%. Since the same quarter one year prior, revenues fell by 17.4%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • CESCA THERAPEUTICS INC reported flat earnings per share in the most recent quarter. 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, CESCA THERAPEUTICS INC continued to lose money by earning -$0.18 versus -$0.30 in the prior year. For the next year, the market is expecting a contraction of 11.1% in earnings (-$0.20 versus -$0.18).

You can view the full analysis from the report here: Cesca Therapeutics 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.

AdCare Health Systems ( ADK) was another company that pushed the Health Services industry lower today. AdCare Health Systems was down $0.07 (1.7%) to $3.96 on light volume. Throughout the day, 9,005 shares of AdCare Health Systems exchanged hands as compared to its average daily volume of 20,800 shares. The stock ranged in price between $3.96-$4.00 after having opened the day at $3.98 as compared to the previous trading day's close of $4.03.

AdCare Health Systems, Inc., through its subsidiaries, owns and manages skilled nursing facilities and assisted living facilities in Alabama, Arkansas, Georgia, Missouri, North Carolina, Ohio, Oklahoma, and South Carolina. AdCare Health Systems has a market cap of $70.5 million and is part of the health care sector. Shares are down 6.3% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate AdCare Health Systems a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates AdCare Health Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, generally disappointing historical performance in the stock itself and poor profit margins.

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Highlights from TheStreet Ratings analysis on ADK 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 Health Care Providers & Services industry. The net income has significantly decreased by 3384.0% when compared to the same quarter one year ago, falling from $0.09 million to -$3.09 million.
  • The debt-to-equity ratio is very high at 5.33 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, ADK has a quick ratio of 0.68, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • ADK's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 32.72%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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 gross profit margin for ADCARE HEALTH SYSTEMS INC is currently extremely low, coming in at 14.58%. Regardless of ADK's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -5.55% trails the industry average.
  • 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 Health Care Providers & Services industry and the overall market, ADCARE HEALTH SYSTEMS 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: AdCare Health Systems 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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