3 Drugs Stocks Pushing The 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.

Two out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 60 points (0.4%) at 16,979 as of Wednesday, Aug. 20, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,544 issues advancing vs. 1,461 declining with 193 unchanged.

The Drugs industry as a whole closed the day down 0.7% versus the S&P 500, which was up 0.2%. Top gainers within the Drugs industry included VBI Vaccines ( VBIV), up 3.3%, Aradigm ( ARDM), up 2.9%, Evoke Pharma ( EVOK), up 2.0%, Ruthigen ( RTGN), up 3.1% and Celator Pharmaceuticals ( CPXX), up 2.2%.

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

Ruthigen ( RTGN) is one of the companies that pushed the Drugs industry higher today. Ruthigen was up $0.17 (3.1%) to $5.60 on heavy volume. Throughout the day, 32,142 shares of Ruthigen exchanged hands as compared to its average daily volume of 15,800 shares. The stock ranged in a price between $5.36-$5.77 after having opened the day at $5.36 as compared to the previous trading day's close of $5.43.

Ruthigen has a market cap of $25.8 million and is part of the health care sector. Shares are unchanged 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, Evoke Pharma ( EVOK) was up $0.13 (2.0%) to $6.60 on average volume. Throughout the day, 15,802 shares of Evoke Pharma exchanged hands as compared to its average daily volume of 11,400 shares. The stock ranged in a price between $6.03-$6.88 after having opened the day at $6.37 as compared to the previous trading day's close of $6.47.

Evoke Pharma has a market cap of $39.8 million and is part of the health care sector. Shares are down 13.2% 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.

Aradigm ( ARDM) was another company that pushed the Drugs industry higher today. Aradigm was up $0.25 (2.9%) to $8.90 on average volume. Throughout the day, 9,965 shares of Aradigm exchanged hands as compared to its average daily volume of 8,200 shares. The stock ranged in a price between $8.56-$8.90 after having opened the day at $8.56 as compared to the previous trading day's close of $8.65.

Aradigm Corporation, a specialty pharmaceutical company, focuses on the development and commercialization of drugs delivered by inhalation for the treatment and prevention of respiratory diseases by pulmonologists. Aradigm has a market cap of $125.9 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 is 1 analyst who rates Aradigm a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Aradigm as a sell. The area that we feel has been the company's primary weakness has been its relatively poor performance when compared with the S&P 500 during the past year.

Highlights from TheStreet Ratings analysis on ARDM go as follows:

  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in 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.
  • ARADIGM CORP reported significant earnings per share improvement 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, ARADIGM CORP reported poor results of -$2.40 versus -$1.60 in the prior year. This year, the market expects an improvement in earnings ($0.23 versus -$2.40).
  • Compared to other companies in the Pharmaceuticals industry and the overall market, ARADIGM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • ARDM has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 6.93, which clearly demonstrates the ability to cover short-term cash needs.
  • 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 49.9% when compared to the same quarter one year prior, rising from -$2.71 million to -$1.36 million.

You can view the full analysis from the report here: Aradigm 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