3 Stocks Pushing The Drugs Industry Lower

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The Drugs industry as a whole closed the day down 0.3% versus the S&P 500, which was down 0.9%. Laggards within the Drugs industry included XTL Biopharmaceuticals ( XTLB), down 3.7%, VBI Vaccines ( VBIV), down 4.2%, MediciNova ( MNOV), down 2.0%, Natural Alternatives International ( NAII), down 6.6% and Cyanotech ( CYAN), down 2.1%.

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

Endo International ( ENDP) is one of the companies that pushed the Drugs industry lower today. Endo International was down $2.58 (3.9%) to $63.87 on average volume. Throughout the day, 1,802,075 shares of Endo International exchanged hands as compared to its average daily volume of 1,896,700 shares. The stock ranged in price between $63.57-$66.36 after having opened the day at $65.97 as compared to the previous trading day's close of $66.45.

Endo International plc, a specialty healthcare company, develops, manufactures, markets, and distributes branded pharmaceutical and generic products, and medical devices worldwide. Endo International has a market cap of $10.3 billion and is part of the health care sector. Shares are up 0.2% year-to-date as of the close of trading on Monday. Currently there are 9 analysts who rate Endo International a buy, 1 analyst rates it a sell, and 6 rate it a hold.

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TheStreet Ratings rates Endo International as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that net income has been generally deteriorating over time.

Highlights from TheStreet Ratings analysis on ENDP go as follows:

  • Compared to its closing price of one year ago, ENDP's share price has jumped by 74.41%, exceeding the performance of the broader market during that same time frame. 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.
  • Net operating cash flow has increased to $211.73 million or 20.45% when compared to the same quarter last year. In addition, ENDO INTERNATIONAL PLC has also vastly surpassed the industry average cash flow growth rate of -66.20%.
  • ENDO INTERNATIONAL PLC's earnings per share declined by 50.0% 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, ENDO INTERNATIONAL PLC continued to lose money by earning -$5.00 versus -$6.57 in the prior year. This year, the market expects an improvement in earnings ($3.74 versus -$5.00).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, ENDO INTERNATIONAL PLC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Pharmaceuticals industry. The net income has significantly decreased by 39.5% when compared to the same quarter one year ago, falling from $35.00 million to $21.16 million.

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

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At the close, MediciNova ( MNOV) was down $0.04 (2.0%) to $1.97 on heavy volume. Throughout the day, 33,011 shares of MediciNova exchanged hands as compared to its average daily volume of 19,800 shares. The stock ranged in price between $1.89-$2.11 after having opened the day at $2.10 as compared to the previous trading day's close of $2.01.

MediciNova, Inc., a development stage biopharmaceutical company, focuses on acquiring and developing small molecule therapeutics for the treatment of serious diseases for the United States market. MediciNova has a market cap of $48.6 million and is part of the health care sector. Shares are down 6.1% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates MediciNova as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on MNOV go as follows:

  • MNOV has underperformed the S&P 500 Index, declining 24.11% from its price level of one year ago. 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.
  • The gross profit margin for MEDICINOVA INC is currently extremely low, coming in at 0.00%. Despite the low profit margin, it has increased significantly from the same period last year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, MEDICINOVA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income increased by 2.8% when compared to the same quarter one year prior, going from -$2.42 million to -$2.35 million.
  • MNOV, with its very weak revenue results, has greatly underperformed against the industry average of 36.5%. Since the same quarter one year prior, revenues plummeted by 100.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here: MediciNova 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.

XTL Biopharmaceuticals ( XTLB) was another company that pushed the Drugs industry lower today. XTL Biopharmaceuticals was down $0.12 (3.7%) to $3.16 on light volume. Throughout the day, 1,461 shares of XTL Biopharmaceuticals exchanged hands as compared to its average daily volume of 5,800 shares. The stock ranged in price between $3.03-$3.18 after having opened the day at $3.03 as compared to the previous trading day's close of $3.28.

XTL Biopharmaceuticals Ltd., a biopharmaceutical company, is engaged in the acquisition and development of pharmaceutical products for the treatment of unmet medical needs. XTL Biopharmaceuticals has a market cap of $38.2 million and is part of the health care sector. Shares are up 13.1% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate XTL Biopharmaceuticals a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates XTL Biopharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on XTLB go as follows:

  • 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 Biotechnology industry and the overall market, XTL BIOPHARMACEUTICALS's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$0.80 million or 44.12% when compared to the same quarter last year. Despite a decrease in cash flow of 44.12%, XTL BIOPHARMACEUTICALS is in line with the industry average cash flow growth rate of -47.73%.
  • XTLB's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 53.72%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income increased by 21.3% when compared to the same quarter one year prior, going from -$0.87 million to -$0.69 million.
  • The revenue fell significantly faster than the industry average of 36.5%. Since the same quarter one year prior, revenues fell by 12.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here: XTL Biopharmaceuticals 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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