3 Stocks Pushing The Drugs Industry Lower

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 Drugs industry as a whole closed the day down 3.1% versus the S&P 500, which was down 0.7%. Laggards within the Drugs industry included Reliv' International ( RELV), down 5.7%, Cyanotech ( CYAN), down 5.7%, Tianyin Pharmaceutical ( TPI), down 2.0%, Celator Pharmaceuticals ( CPXX), down 1.7% and NephroGenex ( NRX), down 2.3%.

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

Shire ( SHPG) is one of the companies that pushed the Drugs industry lower today. Shire was down $3.91 (1.6%) to $233.56 on heavy volume. Throughout the day, 2,845,302 shares of Shire exchanged hands as compared to its average daily volume of 796,900 shares. The stock ranged in price between $229.18-$239.41 after having opened the day at $239.27 as compared to the previous trading day's close of $237.47.

Shire plc, a biopharmaceutical company, together with its subsidiaries, researches, develops, licenses, manufactures, markets, distributes, and sells pharmaceutical products. Shire has a market cap of $46.6 billion and is part of the health care sector. Shares are up 68.1% year-to-date as of the close of trading on Monday. Currently there are 7 analysts who rate Shire a buy, no analysts rate it a sell, and 4 rate it a hold.

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TheStreet Ratings rates Shire as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from TheStreet Ratings analysis on SHPG go as follows:

  • The revenue growth came in higher than the industry average of 5.6%. Since the same quarter one year prior, revenues rose by 17.8%. 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.
  • Compared to its closing price of one year ago, SHPG's share price has jumped by 147.68%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SHPG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Pharmaceuticals industry and the overall market, SHIRE PLC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 255.6% when compared to the same quarter one year prior, rising from $64.80 million to $230.40 million.
  • Net operating cash flow has significantly increased by 53.42% to $246.10 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 10.55%.

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

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At the close, Celator Pharmaceuticals ( CPXX) was down $0.05 (1.7%) to $2.90 on light volume. Throughout the day, 15,148 shares of Celator Pharmaceuticals exchanged hands as compared to its average daily volume of 24,100 shares. The stock ranged in price between $2.90-$2.99 after having opened the day at $2.99 as compared to the previous trading day's close of $2.95.

Celator Pharmaceuticals has a market cap of $78.1 million and is part of the health care sector. Shares are down 7.8% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Celator Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

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Highlights from TheStreet Ratings analysis on CPXX go as follows:

You can view the full analysis from the report here: Celator Pharmaceuticals 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 lower today. Reliv' International was down $0.09 (5.7%) to $1.49 on heavy volume. Throughout the day, 51,796 shares of Reliv' International exchanged hands as compared to its average daily volume of 11,100 shares. The stock ranged in price between $1.36-$1.55 after having opened the day at $1.51 as compared to the previous trading day's close of $1.58.

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 $21.5 million and is part of the health care sector. Shares are down 43.8% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Reliv' International as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures 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.

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Highlights from TheStreet Ratings analysis on RELV go as follows:

  • The gross profit margin for RELIV INTERNATIONAL INC is currently very high, coming in at 81.71%. 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 -1.04% trails the industry average.
  • RELV's debt-to-equity ratio is very low at 0.27 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.
  • RELV, with its decline in revenue, underperformed when compared the industry average of 0.2%. 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'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.
  • Net operating cash flow has significantly decreased to -$1.36 million or 324.34% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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.

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