3 Stocks Pushing The Health Care Sector Lower

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The Health Care sector as a whole closed the day down 0.2% versus the S&P 500, which was down 0.9%. Laggards within the Health Care sector included USMD Holdings ( USMD), down 2.8%, American Caresource Holdings ( ANCI), down 5.2%, ProPhase Labs ( PRPH), down 1.6%, Oragenics ( OGEN), down 2.8% and NephroGenex ( NRX), down 7.2%.

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

Edwards Lifesciences ( EW) is one of the companies that pushed the Health Care sector lower today. Edwards Lifesciences was down $2.58 (3.1%) to $79.94 on average volume. Throughout the day, 1,361,240 shares of Edwards Lifesciences exchanged hands as compared to its average daily volume of 1,236,500 shares. The stock ranged in price between $79.90-$82.49 after having opened the day at $82.39 as compared to the previous trading day's close of $82.51.

Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. Edwards Lifesciences has a market cap of $8.5 billion and is part of the health services industry. Shares are up 25.5% year-to-date as of the close of trading on Wednesday. Currently there are 9 analysts who rate Edwards Lifesciences a buy, no analysts rate it a sell, and 5 rate it a hold.

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TheStreet Ratings rates Edwards Lifesciences as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on EW go as follows:

  • EW's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 5.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 59.10% to $138.90 million when compared to the same quarter last year. In addition, EDWARDS LIFESCIENCES CORP has also vastly surpassed the industry average cash flow growth rate of 6.96%.
  • Despite currently having a low debt-to-equity ratio of 0.54, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.19 is very high and demonstrates very strong liquidity.
  • The gross profit margin for EDWARDS LIFESCIENCES CORP is currently very high, coming in at 75.17%. Regardless of EW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EW's net profit margin of 11.54% compares favorably to the industry average.
  • 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, EDWARDS LIFESCIENCES CORP's return on equity exceeds that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Edwards Lifesciences Ratings Report

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At the close, Oragenics ( OGEN) was down $0.07 (2.8%) to $2.43 on light volume. Throughout the day, 10,453 shares of Oragenics exchanged hands as compared to its average daily volume of 30,100 shares. The stock ranged in price between $2.29-$2.49 after having opened the day at $2.49 as compared to the previous trading day's close of $2.50.

Oragenics, Inc. focuses on the discovery, development, and commercialization of various technologies associated with oral health, antibiotics, and other general health benefits. Oragenics has a market cap of $90.0 million and is part of the health services industry. Shares are down 11.4% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Oragenics a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Oragenics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on OGEN go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Biotechnology industry. The net income has decreased by 3.2% when compared to the same quarter one year ago, dropping from -$1.59 million to -$1.64 million.
  • Net operating cash flow has declined marginally to -$1.58 million or 0.18% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • OGEN'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 32.76%, 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 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 Biotechnology industry and the overall market, ORAGENICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ORAGENICS INC is rather high; currently it is at 65.58%. Regardless of OGEN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OGEN's net profit margin of -763.25% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Oragenics Ratings Report

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American Caresource Holdings ( ANCI) was another company that pushed the Health Care sector lower today. American Caresource Holdings was down $0.17 (5.2%) to $3.07 on light volume. Throughout the day, 7,005 shares of American Caresource Holdings exchanged hands as compared to its average daily volume of 15,300 shares. The stock ranged in price between $2.88-$3.44 after having opened the day at $3.38 as compared to the previous trading day's close of $3.24.

American CareSource Holdings, Inc. provides access to a network of ancillary healthcare service providers in the United States. American Caresource Holdings has a market cap of $22.1 million and is part of the health services industry. Shares are up 100.6% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates American Caresource Holdings 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 and poor profit margins.

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Highlights from TheStreet Ratings analysis on ANCI go as follows:

  • AMERICAN CARESOURCE HLDGS's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, AMERICAN CARESOURCE HLDGS reported poor results of -$0.66 versus -$0.54 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 Providers & Services industry. The net income has decreased by 24.7% when compared to the same quarter one year ago, dropping from -$1.15 million to -$1.44 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 Providers & Services industry and the overall market, AMERICAN CARESOURCE HLDGS's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for AMERICAN CARESOURCE HLDGS is currently extremely low, coming in at 1.28%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -28.65% is significantly below that of the industry average.
  • The revenue fell significantly faster than the industry average of 16.9%. Since the same quarter one year prior, revenues fell by 34.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: American Caresource Holdings 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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