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 Care sector as a whole closed the day up 0.6% versus the S&P 500, which was up 0.1%. Laggards within the Health Care sector included Merus Labs International ( MSLI), down 4.6%, EntreMed ( ENMD), down 1.6%, American Shared Hospital Services ( AMS), down 3.2%, Allied Healthcare Products ( AHPI), down 3.4% and Escalon Medical ( ESMC), down 3.2%.

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

Allied Healthcare Products ( AHPI) is one of the companies that pushed the Health Care sector lower today. Allied Healthcare Products was down $0.09 (3.4%) to $2.60 on light volume. Throughout the day, 8,960 shares of Allied Healthcare Products exchanged hands as compared to its average daily volume of 15,200 shares. The stock ranged in price between $2.42-$2.72 after having opened the day at $2.72 as compared to the previous trading day's close of $2.69.

Allied Healthcare Products, Inc. manufactures, markets, and distributes respiratory care products, medical gas equipment, and emergency medical products in Canada, Mexico, Central and South America, Europe, the Middle East, and the Far East. Allied Healthcare Products has a market cap of $19.3 million and is part of the drugs industry. Shares are up 5.3% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Allied Healthcare Products 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, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on AHPI go as follows:

  • ALLIED HEALTHCARE PRODS 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, ALLIED HEALTHCARE PRODS INC reported poor results of -$0.15 versus -$0.06 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 Equipment & Supplies industry. The net income has significantly decreased by 91.5% when compared to the same quarter one year ago, falling from -$0.47 million to -$0.90 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 Health Care Equipment & Supplies industry and the overall market, ALLIED HEALTHCARE PRODS 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 -$0.73 million or 300.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for ALLIED HEALTHCARE PRODS INC is currently lower than what is desirable, coming in at 25.77%. Regardless of AHPI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AHPI's net profit margin of -10.26% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Allied Healthcare Products 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.

At the close, EntreMed ( ENMD) was down $0.03 (1.6%) to $1.81 on light volume. Throughout the day, 9,244 shares of EntreMed exchanged hands as compared to its average daily volume of 21,300 shares. The stock ranged in price between $1.81-$1.89 after having opened the day at $1.81 as compared to the previous trading day's close of $1.84.

EntreMed has a market cap of $49.2 million and is part of the drugs industry. Shares are up 8.9% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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.

Merus Labs International ( MSLI) was another company that pushed the Health Care sector lower today. Merus Labs International was down $0.07 (4.6%) to $1.46 on light volume. Throughout the day, 2,000 shares of Merus Labs International exchanged hands as compared to its average daily volume of 12,100 shares. The stock ranged in price between $1.44-$1.49 after having opened the day at $1.49 as compared to the previous trading day's close of $1.53.

Merus Labs International Inc., a specialty pharmaceutical company, is engaged in the acquisition and licensing of branded prescription medicines in the United States, Canada, and Europe. Merus Labs International has a market cap of $80.5 million and is part of the drugs industry. Shares are up 8.5% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Merus Labs International as a sell. The area that we feel has been the company's primary weakness has been its poor profit margins.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on MSLI go as follows:

  • The gross profit margin for MERUS LABS INTERNATIONAL INC is currently very high, coming in at 81.88%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MSLI's net profit margin of -21.74% significantly underperformed when compared to the industry average.
  • MERUS LABS INTERNATIONAL INC has improved earnings per share by 42.9% 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 year. During the past fiscal year, MERUS LABS INTERNATIONAL INC continued to lose money by earning -$0.06 versus -$0.70 in the prior year.
  • 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 Pharmaceuticals industry average. The net income increased by 36.7% when compared to the same quarter one year prior, rising from -$2.30 million to -$1.46 million.
  • This stock has increased by 121.86% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in MSLI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • The revenue growth came in higher than the industry average of 5.3%. Since the same quarter one year prior, revenues rose by 14.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

You can view the full analysis from the report here: Merus Labs International 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.