3 Stocks Pushing The Health Care Sector Lower

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The Health Care sector as a whole closed the day down 0.7% versus the S&P 500, which was down 0.6%. Laggards within the Health Care sector included Aoxing Pharmaceutical ( AXN), down 2.4%, Allied Healthcare Products ( AHPI), down 2.2%, SunLink Health Systems ( SSY), down 4.2%, Escalon Medical ( ESMC), down 3.9% and Vision-Sciences ( VSCI), down 1.9%.

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

Vision-Sciences ( VSCI) is one of the companies that pushed the Health Care sector lower today. Vision-Sciences was down $0.02 (1.9%) to $1.05 on light volume. Throughout the day, 7,726 shares of Vision-Sciences exchanged hands as compared to its average daily volume of 27,900 shares. The stock ranged in price between $1.03-$1.12 after having opened the day at $1.05 as compared to the previous trading day's close of $1.07.

Vision-Sciences has a market cap of $52.8 million and is part of the health services industry. Shares are up 7.0% year-to-date as of the close of trading on Thursday.

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At the close, Allied Healthcare Products ( AHPI) was down $0.05 (2.2%) to $2.18 on light volume. Throughout the day, 1,744 shares of Allied Healthcare Products exchanged hands as compared to its average daily volume of 8,100 shares. The stock ranged in price between $2.17-$2.23 after having opened the day at $2.21 as compared to the previous trading day's close of $2.23.

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 $17.1 million and is part of the health services industry. Shares are down 2.2% year-to-date as of the close of trading on Thursday.

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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 24.06% 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

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Aoxing Pharmaceutical ( AXN) was another company that pushed the Health Care sector lower today. Aoxing Pharmaceutical was down $0.01 (2.4%) to $0.37 on light volume. Throughout the day, 2,138 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 26,900 shares. The stock ranged in price between $0.36-$0.37 after having opened the day at $0.36 as compared to the previous trading day's close of $0.38.

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 $19.5 million and is part of the health services industry. Shares are up 56.5% year-to-date as of the close of trading on Thursday.

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.

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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. Despite a decrease in cash flow of 41.91%, AOXING PHARMACEUTICAL CO INC is in line with the industry average cash flow growth rate of -47.88%.
  • 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 71.65% 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 S&P 500 and the Pharmaceuticals industry. 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

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