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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