3 Stocks Advancing The Drugs Industry

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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 89 points (0.5%) at 16,650 as of Wednesday, Aug. 13, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,238 issues advancing vs. 759 declining with 137 unchanged.

The Drugs industry as a whole closed the day up 1.1% versus the S&P 500, which was up 0.6%. Top gainers within the Drugs industry included Aoxing Pharmaceutical ( AXN), up 6.6%, Tianyin Pharmaceutical ( TPI), up 1.7%, Heat Biologics ( HTBX), up 1.5%, Chembio Diagnostics ( CEMI), up 4.3% and Cerulean Pharma ( CERU), up 30.4%.

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

Chembio Diagnostics ( CEMI) is one of the companies that pushed the Drugs industry higher today. Chembio Diagnostics was up $0.15 (4.3%) to $3.65 on heavy volume. Throughout the day, 90,554 shares of Chembio Diagnostics exchanged hands as compared to its average daily volume of 18,000 shares. The stock ranged in a price between $3.45-$3.72 after having opened the day at $3.54 as compared to the previous trading day's close of $3.50.

Chembio Diagnostics has a market cap of $34.2 million and is part of the health care sector. Shares are up 5.6% year-to-date as of the close of trading on Tuesday.

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, Heat Biologics ( HTBX) was up $0.06 (1.5%) to $3.96 on average volume. Throughout the day, 11,225 shares of Heat Biologics exchanged hands as compared to its average daily volume of 13,500 shares. The stock ranged in a price between $3.95-$4.07 after having opened the day at $4.04 as compared to the previous trading day's close of $3.90.

Heat Biologics has a market cap of $25.4 million and is part of the health care sector. Shares are down 44.5% year-to-date as of the close of trading on Tuesday.

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 $0.02 (6.6%) to $0.33 on light volume. Throughout the day, 6,387 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 25,200 shares. The stock ranged in a price between $0.29-$0.33 after having opened the day at $0.29 as compared to the previous trading day's close of $0.31.

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 $18.0 million and is part of the health care sector. Shares are up 22.3% year-to-date as of the close of trading on Tuesday. 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. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • 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 70.94% 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.

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists