3 Stocks Moving The Health Services 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.

The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 13 points (0.1%) at 16,969 as of Wednesday, July 2, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,178 issues advancing vs. 1,877 declining with 123 unchanged.

The Health Services industry as a whole closed the day up 0.1% versus the S&P 500, which was unchanged. Top gainers within the Health Services industry included CAS Medical Systems ( CASM), up 3.5%, Escalon Medical ( ESMC), up 2.2%, Kips Bay Medical ( KIPS), up 2.0%, Lakeland Industries ( LAKE), up 1.7% and American Caresource Holdings ( ANCI), up 5.0%.

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

Lakeland Industries ( LAKE) is one of the companies that pushed the Health Services industry higher today. Lakeland Industries was up $0.12 (1.7%) to $7.21 on light volume. Throughout the day, 3,015 shares of Lakeland Industries exchanged hands as compared to its average daily volume of 8,100 shares. The stock ranged in a price between $7.05-$7.21 after having opened the day at $7.05 as compared to the previous trading day's close of $7.09.

Lakeland Industries, Inc., together with its subsidiaries, manufactures and sells safety garments and accessories for the industrial protective clothing market worldwide. Lakeland Industries has a market cap of $38.4 million and is part of the health care sector. Shares are up 34.8% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Lakeland Industries a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Lakeland Industries as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from TheStreet Ratings analysis on LAKE go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 100.0% when compared to the same quarter one year prior, rising from -$0.84 million to $0.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.3%. Since the same quarter one year prior, revenues slightly increased by 8.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • LAKELAND INDUSTRIES INC reported significant earnings per share improvement 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, LAKELAND INDUSTRIES INC turned its bottom line around by earning $0.00 versus -$4.88 in the prior year.
  • The gross profit margin for LAKELAND INDUSTRIES INC is currently lower than what is desirable, coming in at 31.80%. Regardless of LAKE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.00% trails the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.41, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that LAKE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.70 is low and demonstrates weak liquidity.

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

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At the close, Kips Bay Medical ( KIPS) was up $0.01 (2.0%) to $0.49 on heavy volume. Throughout the day, 178,416 shares of Kips Bay Medical exchanged hands as compared to its average daily volume of 114,200 shares. The stock ranged in a price between $0.46-$0.49 after having opened the day at $0.48 as compared to the previous trading day's close of $0.48.

Kips Bay Medical, Inc., a medical device company, develops, manufactures, and commercializes external saphenous vein support technology (eSVS Mesh), for use in coronary artery bypass grafting (CABG) surgery. Kips Bay Medical has a market cap of $15.2 million and is part of the health care sector. Shares are down 33.2% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Kips Bay Medical 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 Kips Bay Medical as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on KIPS go as follows:

  • 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 Equipment & Supplies industry and the overall market, KIPS BAY MEDICAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • KIPS'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 53.34%, which is also worse than the performance of the S&P 500 Index. 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 revenue fell significantly faster than the industry average of 3.6%. Since the same quarter one year prior, revenues fell by 27.8%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • KIPS BAY MEDICAL INC reported flat earnings per share in the most recent quarter. 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, KIPS BAY MEDICAL INC continued to lose money by earning -$0.23 versus -$0.32 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Health Care Equipment & Supplies industry average, but is less than that of the S&P 500. The net income increased by 1.3% when compared to the same quarter one year prior, going from -$1.46 million to -$1.44 million.

You can view the full analysis from the report here: Kips Bay Medical 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.

CAS Medical Systems ( CASM) was another company that pushed the Health Services industry higher today. CAS Medical Systems was up $0.07 (3.5%) to $2.05 on light volume. Throughout the day, 3,605 shares of CAS Medical Systems exchanged hands as compared to its average daily volume of 17,600 shares. The stock ranged in a price between $1.99-$2.05 after having opened the day at $1.99 as compared to the previous trading day's close of $1.98.

CAS Medical Systems, Inc., a medical technology company, develops, manufactures, and markets medical devices for non-invasive patient monitoring in the United States and internationally. CAS Medical Systems has a market cap of $39.0 million and is part of the health care sector. Shares are up 16.5% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates CAS Medical Systems a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates CAS Medical Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and deteriorating net income.

Highlights from TheStreet Ratings analysis on CASM go as follows:

  • 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 Equipment & Supplies industry and the overall market, CAS MEDICAL SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The change in net income from the same quarter one year ago has exceeded that of the Health Care Equipment & Supplies industry average, but is less than that of the S&P 500. The net income has decreased by 16.5% when compared to the same quarter one year ago, dropping from -$1.59 million to -$1.85 million.
  • CAS MEDICAL SYSTEMS INC has improved earnings per share by 21.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CAS MEDICAL SYSTEMS INC reported poor results of -$0.74 versus -$0.64 in the prior year. This year, the market expects an improvement in earnings (-$0.44 versus -$0.74).
  • CASM's debt-to-equity ratio of 0.62 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that CASM's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.74 is high and demonstrates strong liquidity.
  • 48.40% is the gross profit margin for CAS MEDICAL SYSTEMS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -32.37% is in-line with the industry average.

You can view the full analysis from the report here: CAS Medical Systems 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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