3 Stocks Pushing The Health Services Industry Lower

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The Health Services industry as a whole closed the day down 1.4% versus the S&P 500, which was down 0.5%. Laggards within the Health Services industry included Pro-Dex ( PDEX), down 2.3%, Bio-Rad Laboratories ( BIO.B), down 1.6%, Neovasc ( NVCN), down 2.0%, Electromed ( ELMD), down 6.8% and Lakeland Industries ( LAKE), down 1.9%.

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

Grifols ( GRFS) is one of the companies that pushed the Health Services industry lower today. Grifols was down $1.51 (3.5%) to $42.18 on average volume. Throughout the day, 560,387 shares of Grifols exchanged hands as compared to its average daily volume of 670,000 shares. The stock ranged in price between $42.12-$43.85 after having opened the day at $43.85 as compared to the previous trading day's close of $43.69.

Grifols, S.A., a specialty biopharmaceutical company, develops, manufactures, and distributes a range of plasma derivative products primarily in the European Union, Spain, the United States, Canada, and internationally. Grifols has a market cap of $15.0 billion and is part of the health care sector. Shares are up 21.0% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts who rate Grifols a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Grifols as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from TheStreet Ratings analysis on GRFS go as follows:

  • Powered by its strong earnings growth of 37.14% and other important driving factors, this stock has surged by 50.73% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • GRIFOLS SA has improved earnings per share by 37.1% 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, GRIFOLS SA increased its bottom line by earning $1.39 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($2.64 versus $1.39).
  • The gross profit margin for GRIFOLS SA is rather high; currently it is at 55.19%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, GRFS's net profit margin of 15.15% significantly trails the industry average.
  • Currently the debt-to-equity ratio of 1.72 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Regardless of the company's weak debt-to-equity ratio, GRFS has managed to keep a strong quick ratio of 1.85, which demonstrates the ability to cover short-term cash needs.

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

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At the close, Lakeland Industries ( LAKE) was down $0.13 (1.9%) to $6.63 on heavy volume. Throughout the day, 19,055 shares of Lakeland Industries exchanged hands as compared to its average daily volume of 8,300 shares. The stock ranged in price between $6.40-$6.93 after having opened the day at $6.89 as compared to the previous trading day's close of $6.76.

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 $36.2 million and is part of the health care sector. Shares are up 28.5% year-to-date as of the close of trading on Thursday.

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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 8.4%. 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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Electromed ( ELMD) was another company that pushed the Health Services industry lower today. Electromed was down $0.10 (6.8%) to $1.36 on light volume. Throughout the day, 3,182 shares of Electromed exchanged hands as compared to its average daily volume of 24,100 shares. The stock ranged in price between $1.36-$1.39 after having opened the day at $1.38 as compared to the previous trading day's close of $1.46.

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy products. Electromed has a market cap of $11.8 million and is part of the health care sector. Shares are down 57.1% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Electromed a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Electromed 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 and disappointing return on equity.

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Highlights from TheStreet Ratings analysis on ELMD go as follows:

  • ELECTROMED INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, ELECTROMED INC swung to a loss, reporting -$0.16 versus $0.02 in the prior year. For the next year, the market is expecting a contraction of 18.8% in earnings (-$0.19 versus -$0.16).
  • 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 Equipment & Supplies industry. The net income has significantly decreased by 132.9% when compared to the same quarter one year ago, falling from -$0.43 million to -$1.00 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ELECTROMED INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ELECTROMED INC is rather high; currently it is at 68.31%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ELMD's net profit margin of -25.37% significantly underperformed when compared to the industry average.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

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

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