3 Stocks Pushing The Health Services 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 Health Services industry as a whole closed the day down 0.3% versus the S&P 500, which was down 0.6%. Laggards within the Health Services industry included Allied Healthcare Products ( AHPI), down 2.2%, SunLink Health Systems ( SSY), down 4.2%, Escalon Medical ( ESMC), down 3.9%, Vision-Sciences ( VSCI), down 1.9% and American Shared Hospital Services ( AMS), down 4.4%.

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

WellCare Health Plans ( WCG) is one of the companies that pushed the Health Services industry lower today. WellCare Health Plans was down $15.34 (20.0%) to $61.51 on heavy volume. Throughout the day, 5,236,411 shares of WellCare Health Plans exchanged hands as compared to its average daily volume of 547,000 shares. The stock ranged in price between $59.75-$64.46 after having opened the day at $60.63 as compared to the previous trading day's close of $76.85.

WellCare Health Plans, Inc. provides managed care services for government-sponsored health care programs in the United States. It operates in three segments: Medicaid, MA, and PDP. WellCare Health Plans has a market cap of $3.4 billion and is part of the health care sector. Shares are up 9.1% year-to-date as of the close of trading on Thursday. Currently there are 6 analysts who rate WellCare Health Plans a buy, 2 analysts rate it a sell, and 4 rate it a hold.

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TheStreet Ratings rates WellCare Health Plans as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on WCG go as follows:

  • The revenue growth came in higher than the industry average of 15.7%. Since the same quarter one year prior, revenues rose by 32.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, WCG has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 104.08% and other important driving factors, this stock has surged by 25.31% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WCG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 104.9% when compared to the same quarter one year prior, rising from $21.52 million to $44.10 million.

You can view the full analysis from the report here: WellCare Health Plans 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, Vision-Sciences ( VSCI) 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 care sector. Shares are up 7.0% 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 VSCI go as follows:

You can view the full analysis from the report here: Vision-Sciences 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 lower today. Allied Healthcare Products 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 care sector. Shares are down 2.2% year-to-date as of the close of trading on Thursday.

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.

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 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

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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