3 Stocks Advancing The Drugs Industry

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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 100 points (0.6%) at 16,838 as of Thursday, June 5, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,349 issues advancing vs. 623 declining with 153 unchanged.

The Drugs industry as a whole closed the day up 1.4% versus the S&P 500, which was up 0.6%. Top gainers within the Drugs industry included Reliv' International ( RELV), up 2.9%, EntreMed ( ENMD), up 2.3%, Celsus Therapeutics ( CLTX), up 1.6%, Redhill Biopharma ( RDHL), up 1.6% and Codexis ( CDXS), up 4.2%.

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 $0.25 (1.6%) to $16.73 on average volume. Throughout the day, 3,659 shares of Redhill Biopharma exchanged hands as compared to its average daily volume of 3,400 shares. The stock ranged in a price between $16.30-$16.78 after having opened the day at $16.33 as compared to the previous trading day's close of $16.48.

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 $147.3 million and is part of the health care sector. Shares are up 39.7% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Redhill Biopharma a buy, no analysts rate it a sell, and none rate it a hold.

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 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 5.4%. 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, EntreMed ( ENMD) was up $0.04 (2.3%) to $1.75 on light volume. Throughout the day, 8,143 shares of EntreMed exchanged hands as compared to its average daily volume of 21,200 shares. The stock ranged in a price between $1.71-$1.75 after having opened the day at $1.71 as compared to the previous trading day's close of $1.71.

EntreMed has a market cap of $48.8 million and is part of the health care sector. Shares are up 8.1% year-to-date as of the close of trading on Wednesday.

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.

Reliv' International ( RELV) was another company that pushed the Drugs industry higher today. Reliv' International was up $0.05 (2.9%) to $1.80 on light volume. Throughout the day, 10,918 shares of Reliv' International exchanged hands as compared to its average daily volume of 15,500 shares. The stock ranged in a price between $1.74-$1.98 after having opened the day at $1.75 as compared to the previous trading day's close of $1.75.

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 $22.5 million and is part of the health care sector. Shares are down 37.7% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Reliv' International a buy, no analysts rate it a sell, and none rate it a hold.

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 0.0%. 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.

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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