3 Stocks Boosting The Drugs Industry Higher

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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 64.62 points (-0.4%) at 16,379 as of Thursday, Aug. 7, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,596 issues advancing vs. 1,415 declining with 129 unchanged.

The Drugs industry as a whole closed the day down 1.1% versus the S&P 500, which was down 0.6%. Top gainers within the Drugs industry included Aoxing Pharmaceutical ( AXN), up 7.8%, Tianyin Pharmaceutical ( TPI), up 1.7%, Oragenics ( OGEN), up 6.4%, Heat Biologics ( HTBX), up 1.6% and Chembio Diagnostics ( CEMI), up 1.6%.

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

Heat Biologics ( HTBX) is one of the companies that pushed the Drugs industry higher today. Heat Biologics was up $0.06 (1.6%) to $3.87 on average volume. Throughout the day, 13,625 shares of Heat Biologics exchanged hands as compared to its average daily volume of 14,300 shares. The stock ranged in a price between $3.60-$3.87 after having opened the day at $3.60 as compared to the previous trading day's close of $3.81.

Heat Biologics has a market cap of $24.8 million and is part of the health care sector. Shares are down 46.3% year-to-date as of the close of trading on Wednesday.

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 HTBX go as follows:

You can view the full analysis from the report here: Heat Biologics 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, Oragenics ( OGEN) was up $0.11 (6.4%) to $1.83 on light volume. Throughout the day, 445 shares of Oragenics exchanged hands as compared to its average daily volume of 22,800 shares. The stock ranged in a price between $1.80-$1.83 after having opened the day at $1.80 as compared to the previous trading day's close of $1.72.

Oragenics, Inc. focuses on the discovery, development, and commercialization of various technologies associated with oral health, antibiotics, and other general health benefits. Oragenics has a market cap of $61.8 million and is part of the health care sector. Shares are down 38.8% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Oragenics 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 Oragenics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on OGEN go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has decreased by 3.2% when compared to the same quarter one year ago, dropping from -$1.59 million to -$1.64 million.
  • OGEN'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 44.26%, 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.
  • Net operating cash flow has declined marginally to -$1.58 million or 0.18% when compared to the same quarter last year. Despite a decrease in cash flow ORAGENICS INC is still fairing well by exceeding its industry average cash flow growth rate of -47.73%.
  • 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, ORAGENICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ORAGENICS INC is rather high; currently it is at 65.58%. Regardless of OGEN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OGEN's net profit margin of -763.25% significantly underperformed when compared to the industry average.

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

Aoxing Pharmaceutical ( AXN) was another company that pushed the Drugs industry higher today. Aoxing Pharmaceutical was up $0.03 (7.8%) to $0.40 on light volume. Throughout the day, 1,071 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 26,200 shares. The stock ranged in a price between $0.38-$0.40 after having opened the day at $0.38 as compared to the previous trading day's close of $0.37.

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 $20.9 million and is part of the health care sector. Shares are up 48.8% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Aoxing Pharmaceutical a buy, no analysts rate it a sell, and none rate it a hold.

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.

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 AOXING PHARMACEUTICAL CO INC is still fairing well by exceeding its industry average cash flow growth rate of -66.20%.
  • 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 53.32% 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

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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