3 Stocks Boosting The Drugs Industry Higher

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 14.32 points (-0.1%) at 16,933 as of Monday, June 23, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,387 issues advancing vs. 1,632 declining with 133 unchanged.

The Drugs industry as a whole closed the day down 0.2% versus the S&P 500, which was down 0.1%. Top gainers within the Drugs industry included CymaBay Therapeutics ( CBAY), up 1.7%, CymaBay Therapeutics ( CYMA), up 1.7%, Aoxing Pharmaceutical ( AXN), up 9.2%, EntreMed ( ENMD), up 10.5% and Oragenics ( OGEN), up 4.6%.

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

Oragenics ( OGEN) is one of the companies that pushed the Drugs industry higher today. Oragenics was up $0.10 (4.6%) to $2.29 on heavy volume. Throughout the day, 63,580 shares of Oragenics exchanged hands as compared to its average daily volume of 29,200 shares. The stock ranged in a price between $2.05-$2.50 after having opened the day at $2.05 as compared to the previous trading day's close of $2.19.

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 $85.3 million and is part of the health care sector. Shares are down 22.1% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Oragenics 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 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 30.59%, 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

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 $0.17 (10.5%) to $1.79 on heavy volume. Throughout the day, 34,772 shares of EntreMed exchanged hands as compared to its average daily volume of 20,800 shares. The stock ranged in a price between $1.64-$1.80 after having opened the day at $1.64 as compared to the previous trading day's close of $1.62.

EntreMed has a market cap of $47.1 million and is part of the health care sector. Shares are up 4.1% year-to-date as of the close of trading on Friday.

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.

Aoxing Pharmaceutical ( AXN) was another company that pushed the Drugs industry higher today. Aoxing Pharmaceutical was up $0.03 (9.2%) to $0.36 on light volume. Throughout the day, 7,650 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 39,800 shares. The stock ranged in a price between $0.31-$0.36 after having opened the day at $0.33 as compared to the previous trading day's close of $0.33.

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 $16.9 million and is part of the health care sector. Shares are up 32.3% year-to-date as of the close of trading on Friday. 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. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from TheStreet Ratings analysis on AXN go as follows:

  • Net operating cash flow has decreased to -$4.35 million or 41.91% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • AOXING PHARMACEUTICAL CO INC has improved earnings per share by 20.0% 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.
  • 43.50% 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 -74.48% significantly underperformed when compared to the industry average.
  • Investors have driven up the company's shares by 50.66% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in AXN do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Pharmaceuticals industry average, but is less than that of the S&P 500. The net income increased by 29.8% when compared to the same quarter one year prior, rising from -$2.60 million to -$1.82 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.

More from Markets

Stocks Slide, Dollar Rises as China Markets, Lira Crisis Keep Investors Cautious

Stocks Slide, Dollar Rises as China Markets, Lira Crisis Keep Investors Cautious

U.K. Inflation Rises for First Time in 8 Months as Pound Continues to Tumble

U.K. Inflation Rises for First Time in 8 Months as Pound Continues to Tumble

RBS Confirms First Dividend In a Decade After $4.9 Billion DoJ Settlement

RBS Confirms First Dividend In a Decade After $4.9 Billion DoJ Settlement

Tesla's Musk Has Serious Dell Envy; Hedge Funds Reveal Portfolio Changes - ICYMI

Tesla's Musk Has Serious Dell Envy; Hedge Funds Reveal Portfolio Changes - ICYMI

Rewind: Jim Cramer on Home Depot, Tapestry, Nordstrom and Square

Rewind: Jim Cramer on Home Depot, Tapestry, Nordstrom and Square