3 Health Care Stocks Driving The Sector 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 Health Care sector as a whole closed the day down 0.5% versus the S&P 500, which was up 0.2%. Top gainers within the Health Care sector included SunLink Health Systems ( SSY), up 2.2%, VBI Vaccines ( VBIV), up 3.3%, CAS Medical Systems ( CASM), up 6.1%, Electromed ( ELMD), up 2.0% and Daxor ( DXR), up 3.6%.

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

Daxor ( DXR) is one of the companies that pushed the Health Care sector higher today. Daxor was up $0.25 (3.6%) to $7.25 on light volume. Throughout the day, 200 shares of Daxor exchanged hands as compared to its average daily volume of 5,700 shares. The stock ranged in a price between $6.90-$7.25 after having opened the day at $6.90 as compared to the previous trading day's close of $7.00.

Daxor Corporation, a medical device manufacturing company, offers biotech services in the United States. The company develops and markets BVA-100 Blood Volume Analyzer, an instrument that measures human blood volume. Daxor has a market cap of $28.5 million and is part of the drugs industry. Shares are up 2.5% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Daxor a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Daxor as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on DXR go as follows:

  • DAXOR CORP 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, DAXOR CORP swung to a loss, reporting -$1.69 versus $1.17 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 165.8% when compared to the same quarter one year ago, falling from $2.27 million to -$1.49 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, DAXOR CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, DXR has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for DAXOR CORP is currently very high, coming in at 71.27%. 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 -404.33% is in-line with the industry average.

You can view the full analysis from the report here: Daxor 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, Electromed ( ELMD) was up $0.03 (2.0%) to $1.54 on light volume. Throughout the day, 12,347 shares of Electromed exchanged hands as compared to its average daily volume of 23,900 shares. The stock ranged in a price between $1.48-$1.54 after having opened the day at $1.49 as compared to the previous trading day's close of $1.51.

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy products. Electromed has a market cap of $12.0 million and is part of the drugs industry. Shares are down 55.6% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Electromed 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 Electromed as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on ELMD go as follows:

  • ELECTROMED 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, ELECTROMED INC swung to a loss, reporting -$0.16 versus $0.02 in the prior year. For the next year, the market is expecting a contraction of 18.8% in earnings (-$0.19 versus -$0.16).
  • 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 132.9% when compared to the same quarter one year ago, falling from -$0.43 million to -$1.00 million.
  • 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 Health Care Equipment & Supplies industry and the overall market, ELECTROMED INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ELECTROMED INC is rather high; currently it is at 68.31%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ELMD's net profit margin of -25.37% significantly underperformed when compared to the industry average.
  • Net operating cash flow has increased to -$0.11 million or 47.16% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 2.29%.

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

CAS Medical Systems ( CASM) was another company that pushed the Health Care sector higher today. CAS Medical Systems was up $0.09 (6.1%) to $1.57 on heavy volume. Throughout the day, 45,435 shares of CAS Medical Systems exchanged hands as compared to its average daily volume of 19,000 shares. The stock ranged in a price between $1.56-$1.65 after having opened the day at $1.62 as compared to the previous trading day's close of $1.48.

CAS Medical Systems, Inc., a medical technology company, develops, manufactures, and markets medical devices for non-invasive patient monitoring in the United States and internationally. CAS Medical Systems has a market cap of $28.6 million and is part of the drugs industry. Shares are down 12.9% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates CAS Medical Systems a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates CAS Medical Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally high debt management risk.

Highlights from TheStreet Ratings analysis on CASM go as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, CAS MEDICAL SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio of 1.24 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.78, which shows the ability to cover short-term cash needs.
  • 40.80% is the gross profit margin for CAS MEDICAL SYSTEMS INC which we consider to be strong. Regardless of CASM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CASM's net profit margin of -38.91% significantly underperformed when compared to the industry average.
  • 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.
  • CAS MEDICAL SYSTEMS INC has improved earnings per share by 40.9% 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, CAS MEDICAL SYSTEMS INC reported poor results of -$0.74 versus -$0.64 in the prior year. This year, the market expects an improvement in earnings (-$0.48 versus -$0.74).

You can view the full analysis from the report here: CAS Medical Systems 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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