3 Stocks Advancing The Health Services Industry

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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 115 points (0.7%) at 17,091 as of Friday, July 18, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,387 issues advancing vs. 565 declining with 160 unchanged.

The Health Services industry as a whole closed the day up 1.3% versus the S&P 500, which was up 1.0%. Top gainers within the Health Services industry included Allied Healthcare Products ( AHPI), up 5.0%, SunLink Health Systems ( SSY), up 1.8%, Pro-Dex ( PDEX), up 4.5%, Akers Biosciences ( AKER), up 9.2% and Misonix ( MSON), up 2.1%.

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

Misonix ( MSON) is one of the companies that pushed the Health Services industry higher today. Misonix was up $0.14 (2.1%) to $6.65 on heavy volume. Throughout the day, 24,495 shares of Misonix exchanged hands as compared to its average daily volume of 8,700 shares. The stock ranged in a price between $6.51-$6.89 after having opened the day at $6.51 as compared to the previous trading day's close of $6.51.

Misonix, Inc. designs, develops, manufactures, and markets minimally invasive ultrasonic surgical device products for spine surgery, skull-based surgery, neurosurgery, wound debridement, cosmetic surgery, laparoscopic surgery, and other surgical applications. Misonix has a market cap of $48.1 million and is part of the health care sector. Shares are up 17.2% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Misonix 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 Misonix as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from TheStreet Ratings analysis on MSON go as follows:

  • The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 26.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MSON has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.41, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for MISONIX INC is currently very high, coming in at 72.00%. 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 8.38% trails the industry average.
  • MISONIX INC reported significant earnings per share improvement 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, MISONIX INC reported poor results of -$0.40 versus -$0.09 in the prior year. This year, the market expects an improvement in earnings ($0.02 versus -$0.40).
  • 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, MISONIX INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Misonix 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, Akers Biosciences ( AKER) was up $0.33 (9.2%) to $3.93 on heavy volume. Throughout the day, 24,434 shares of Akers Biosciences exchanged hands as compared to its average daily volume of 15,500 shares. The stock ranged in a price between $3.73-$3.96 after having opened the day at $3.73 as compared to the previous trading day's close of $3.60.

Akers Biosciences has a market cap of $19.1 million and is part of the health care sector. Shares are down 42.5% year-to-date as of the close of trading on Thursday.

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 AKER go as follows:

You can view the full analysis from the report here: Akers Biosciences 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.

Allied Healthcare Products ( AHPI) was another company that pushed the Health Services industry higher today. Allied Healthcare Products was up $0.11 (5.0%) to $2.32 on heavy volume. Throughout the day, 13,705 shares of Allied Healthcare Products exchanged hands as compared to its average daily volume of 5,400 shares. The stock ranged in a price between $2.24-$2.32 after having opened the day at $2.30 as compared to the previous trading day's close of $2.21.

Allied Healthcare Products, Inc. manufactures, markets, and distributes respiratory care products, medical gas equipment, and emergency medical products in Canada, Mexico, Central and South America, Europe, the Middle East, and the Far East. Allied Healthcare Products has a market cap of $18.3 million and is part of the health care sector. Shares are unchanged year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Allied Healthcare Products a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Allied Healthcare Products 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, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on AHPI go as follows:

  • ALLIED HEALTHCARE PRODS 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ALLIED HEALTHCARE PRODS INC reported poor results of -$0.15 versus -$0.06 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 Equipment & Supplies industry. The net income has significantly decreased by 247.3% when compared to the same quarter one year ago, falling from -$0.28 million to -$0.97 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, ALLIED HEALTHCARE PRODS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ALLIED HEALTHCARE PRODS INC is rather low; currently it is at 22.80%. Regardless of AHPI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AHPI's net profit margin of -10.63% significantly underperformed when compared to the industry average.
  • The share price of ALLIED HEALTHCARE PRODS INC has not done very well: it is down 21.58% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

You can view the full analysis from the report here: Allied Healthcare Products 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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