3 Stocks Pushing The Health Care Sector 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 Care sector as a whole closed the day down 0.3% versus the S&P 500, which was down 0.9%. Laggards within the Health Care sector included XTL Biopharmaceuticals ( XTLB), down 3.7%, Escalon Medical ( ESMC), down 3.9%, Vision-Sciences ( VSCI), down 6.9%, Pro-Dex ( PDEX), down 4.2% and VBI Vaccines ( VBIV), down 4.2%.

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

Agilent Technologies ( A) is one of the companies that pushed the Health Care sector lower today. Agilent Technologies was down $1.00 (1.8%) to $55.26 on light volume. Throughout the day, 1,294,513 shares of Agilent Technologies exchanged hands as compared to its average daily volume of 1,804,700 shares. The stock ranged in price between $55.10-$56.11 after having opened the day at $55.88 as compared to the previous trading day's close of $56.26.

Agilent Technologies, Inc. provides bio-analytical and electronic measurement solutions and services to the life sciences, chemical analysis, diagnostics and genomics, communications, and electronics industries worldwide. Agilent Technologies has a market cap of $18.7 billion and is part of the health services industry. Shares are down 2.0% year-to-date as of the close of trading on Monday. Currently there are 8 analysts who rate Agilent Technologies a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Agilent Technologies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on A go as follows:

  • Compared to its closing price of one year ago, A's share price has jumped by 25.39%, 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, A should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, A has a quick ratio of 2.24, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $325.00 million or 3.17% when compared to the same quarter last year. Despite an increase in cash flow of 3.17%, AGILENT TECHNOLOGIES INC is still growing at a significantly lower rate than the industry average of 64.29%.
  • The gross profit margin for AGILENT TECHNOLOGIES INC is rather high; currently it is at 57.89%. Regardless of A's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, A's net profit margin of 8.03% compares favorably to the industry average.

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

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At the close, Vision-Sciences ( VSCI) was down $0.07 (6.9%) to $0.94 on heavy volume. Throughout the day, 151,942 shares of Vision-Sciences exchanged hands as compared to its average daily volume of 24,700 shares. The stock ranged in price between $0.94-$1.10 after having opened the day at $1.04 as compared to the previous trading day's close of $1.01.

Vision-Sciences, Inc., through its subsidiaries, designs, develops, manufactures, and markets endoscopy products. It operates through Medical and Industrial segments. Vision-Sciences has a market cap of $48.0 million and is part of the health services industry. Shares are up 1.0% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Vision-Sciences as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and unimpressive growth in net income.

Highlights from TheStreet Ratings analysis on VSCI go as follows:

  • The gross profit margin for VISION-SCIENCES INC is currently lower than what is desirable, coming in at 31.02%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -48.08% is significantly below that of the industry average.
  • The change in net income from the same quarter one year ago has exceeded that of the Health Care Equipment & Supplies industry average, but is less than that of the S&P 500. The net income has decreased by 15.8% when compared to the same quarter one year ago, dropping from -$2.07 million to -$2.40 million.
  • VISION-SCIENCES INC's earnings per share declined by 25.0% 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, VISION-SCIENCES INC continued to lose money by earning -$0.16 versus -$0.22 in the prior year.
  • Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • Net operating cash flow has increased to -$1.37 million or 44.79% when compared to the same quarter last year. In addition, VISION-SCIENCES INC has also vastly surpassed the industry average cash flow growth rate of -30.55%.

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.

XTL Biopharmaceuticals ( XTLB) was another company that pushed the Health Care sector 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 services industry. 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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