3 Drugs Stocks Moving The Industry Upward

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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 42.32 points (-0.3%) at 16,633 as of Wednesday, May 28, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,597 issues advancing vs. 1,466 declining with 135 unchanged.

The Drugs industry as a whole closed the day up 0.8% versus the S&P 500, which was down 0.1%. Top gainers within the Drugs industry included Aoxing Pharmaceutical ( AXN), up 14.0%, Reliv' International ( RELV), up 4.4%, Natural Alternatives International ( NAII), up 1.5%, Redhill Biopharma ( RDHL), up 2.6% and ProPhase Labs ( PRPH), up 2.6%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Redhill Biopharma ( RDHL) is one of the companies that pushed the Drugs industry higher today. Redhill Biopharma was up $0.44 (2.6%) to $17.04 on heavy volume. Throughout the day, 10,371 shares of Redhill Biopharma exchanged hands as compared to its average daily volume of 3,800 shares. The stock ranged in a price between $16.80-$17.10 after having opened the day at $16.89 as compared to the previous trading day's close of $16.60.

RedHill Biopharma Ltd., a biopharmaceutical company, acquires and develops late clinical-stage, proprietary formulations, and combinations of existing drugs. Redhill Biopharma has a market cap of $142.9 million and is part of the health care sector. Shares are up 38.6% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Redhill Biopharma a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Redhill Biopharma as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from TheStreet Ratings analysis on RDHL go as follows:

  • RDHL's very impressive revenue growth greatly exceeded the industry average of 5.3%. Since the same quarter one year prior, revenues leaped by 175025.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • RDHL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
  • Compared to other companies in the Pharmaceuticals industry and the overall market, REDHILL BIOPHARMA LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • REDHILL BIOPHARMA LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, REDHILL BIOPHARMA LTD reported poor results of -$1.70 versus -$0.70 in the prior year.

You can view the full analysis from the report here: Redhill Biopharma 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, Reliv' International ( RELV) was up $0.08 (4.4%) to $1.93 on light volume. Throughout the day, 3,229 shares of Reliv' International exchanged hands as compared to its average daily volume of 15,100 shares. The stock ranged in a price between $1.87-$1.97 after having opened the day at $1.97 as compared to the previous trading day's close of $1.85.

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 $23.7 million and is part of the health care sector. Shares are down 33.5% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Reliv' International a buy, no analysts rate it a sell, and none rate it a hold.

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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.

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

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

Aoxing Pharmaceutical ( AXN) was another company that pushed the Drugs industry higher today. Aoxing Pharmaceutical was up $0.04 (14.0%) to $0.30 on light volume. Throughout the day, 17,617 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 56,300 shares. The stock ranged in a price between $0.28-$0.33 after having opened the day at $0.29 as compared to the previous trading day's close of $0.26.

Aoxing Pharmaceutical Company, Inc., a specialty pharmaceutical company, researches, develops, manufactures, and distributes various narcotic, pain-management, and addiction treatment pharmaceutical products primarily in the People's Republic of China. Aoxing Pharmaceutical has a market cap of $15.6 million and is part of the health care sector. Shares are up 25.6% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Aoxing Pharmaceutical a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Aoxing Pharmaceutical as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and disappointing return on equity.

Highlights from TheStreet Ratings analysis on AXN go as follows:

  • The debt-to-equity ratio is very high at 18.29 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.21, which clearly demonstrates the inability to cover short-term cash needs.
  • 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 Pharmaceuticals industry and the overall market, AOXING PHARMACEUTICAL CO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 45.40% is the gross profit margin for AOXING PHARMACEUTICAL CO INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, AXN's net profit margin of -52.66% significantly underperformed when compared to the industry average.
  • AOXING PHARMACEUTICAL CO INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, AOXING PHARMACEUTICAL CO INC reported poor results of -$0.34 versus -$0.32 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 39.0% when compared to the same quarter one year prior, rising from -$2.99 million to -$1.83 million.

You can view the full analysis from the report here: Aoxing Pharmaceutical 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.

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.

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