3 Stocks Pushing The Drugs 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 Drugs industry as a whole closed the day down 0.9% versus the S&P 500, which was down 0.6%. Laggards within the Drugs industry included XTL Biopharmaceuticals ( XTLB), down 2.3%, VBI Vaccines ( VBIV), down 3.6%, Celsus Therapeutics ( CLTX), down 2.7%, Reliv' International ( RELV), down 5.3% and NephroGenex ( NRX), down 3.1%.

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

Grifols ( GRFS) is one of the companies that pushed the Drugs industry lower today. Grifols was down $1.48 (4.1%) to $34.71 on average volume. Throughout the day, 602,620 shares of Grifols exchanged hands as compared to its average daily volume of 705,600 shares. The stock ranged in price between $34.55-$36.05 after having opened the day at $35.93 as compared to the previous trading day's close of $36.19.

Grifols, S.A., a specialty biopharmaceutical company, develops, manufactures, and distributes a range of plasma derivative products primarily in the European Union, Spain, the United States, Canada, and internationally. Grifols has a market cap of $12.4 billion and is part of the health care sector. Shares are up 0.2% year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts who rate Grifols a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Grifols as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, robust revenue growth, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from TheStreet Ratings analysis on GRFS go as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • GRIFOLS SA has improved earnings per share by 37.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GRIFOLS SA increased its bottom line by earning $1.39 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($2.59 versus $1.39).
  • GRFS's revenue growth trails the industry average of 36.5%. Since the same quarter one year prior, revenues rose by 25.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has increased to $172.03 million or 45.30% when compared to the same quarter last year. In addition, GRIFOLS SA has also vastly surpassed the industry average cash flow growth rate of -47.73%.

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

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At the close, Reliv' International ( RELV) was down $0.07 (5.3%) to $1.25 on light volume. Throughout the day, 8,188 shares of Reliv' International exchanged hands as compared to its average daily volume of 37,200 shares. The stock ranged in price between $1.25-$1.33 after having opened the day at $1.30 as compared to the previous trading day's close of $1.32.

Reliv' International, Inc. develops, manufactures, and markets nutritional supplements that promote basic nutrition, weight loss, athletic performance, digestive health, women's health, anti-aging, and healthy energy. Reliv' International has a market cap of $16.7 million and is part of the health care sector. Shares are down 53.0% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Reliv' International as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on RELV go as follows:

  • The gross profit margin for RELIV INTERNATIONAL INC is currently very high, coming in at 81.71%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.04% trails the industry average.
  • Although RELV's debt-to-equity ratio of 0.27 is very low, it is currently higher than that of the industry average. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.82 is somewhat weak and could be cause for future problems.
  • RELV, with its decline in revenue, underperformed when compared the industry average of 1.5%. Since the same quarter one year prior, revenues fell by 23.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • RELIV INTERNATIONAL 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, RELIV INTERNATIONAL INC reported lower earnings of $0.06 versus $0.10 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 Personal Products industry. The net income has significantly decreased by 177.4% when compared to the same quarter one year ago, falling from $0.20 million to -$0.15 million.

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

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XTL Biopharmaceuticals ( XTLB) was another company that pushed the Drugs industry lower today. XTL Biopharmaceuticals was down $0.07 (2.3%) to $2.89 on light volume. Throughout the day, 400 shares of XTL Biopharmaceuticals exchanged hands as compared to its average daily volume of 4,500 shares. The stock ranged in price between $2.53-$2.89 after having opened the day at $2.53 as compared to the previous trading day's close of $2.96.

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 $36.8 million and is part of the health care sector. Shares are up 2.1% year-to-date as of the close of trading on Wednesday. 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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