3 Stocks Pushing The Health Services Industry Lower

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The Health Services industry as a whole was unchanged today versus the S&P 500, which was up 0.3%. Laggards within the Health Services industry included American Shared Hospital Services ( AMS), down 1.6%, Electromed ( ELMD), down 9.1%, Semler Scientific ( SMLR), down 1.7%, Daxor ( DXR), down 2.5% and Dynatronics ( DYNT), down 3.5%.

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

Cyberonics ( CYBX) is one of the companies that pushed the Health Services industry lower today. Cyberonics was down $3.79 (6.1%) to $58.27 on heavy volume. Throughout the day, 1,085,779 shares of Cyberonics exchanged hands as compared to its average daily volume of 237,400 shares. The stock ranged in price between $56.52-$59.92 after having opened the day at $59.92 as compared to the previous trading day's close of $62.06.

Cyberonics, Inc., together with its subsidiaries, designs, develops, markets, and sells implantable medical devices to hospitals and ambulatory surgery centers. Cyberonics has a market cap of $1.7 billion and is part of the health care sector. Shares are down 4.3% year-to-date as of the close of trading on Wednesday. Currently there are 7 analysts who rate Cyberonics a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Cyberonics as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on CYBX go as follows:

  • CYBX's revenue growth has slightly outpaced the industry average of 8.6%. Since the same quarter one year prior, revenues slightly increased by 9.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CYBX 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 5.99, which clearly demonstrates the ability to cover short-term cash needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, CYBERONICS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • CYBERONICS INC reported significant earnings per share improvement 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, CYBERONICS INC increased its bottom line by earning $2.00 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($2.36 versus $2.00).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 59.8% when compared to the same quarter one year prior, rising from $11.53 million to $18.43 million.

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

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At the close, Daxor ( DXR) was down $0.18 (2.5%) to $7.07 on light volume. Throughout the day, 492 shares of Daxor exchanged hands as compared to its average daily volume of 5,600 shares. The stock ranged in price between $6.72-$7.07 after having opened the day at $6.78 as compared to the previous trading day's close of $7.25.

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 health care sector. Shares are up 2.5% year-to-date as of the close of trading on Wednesday.

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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

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Electromed ( ELMD) was another company that pushed the Health Services industry lower today. Electromed was down $0.14 (9.1%) to $1.40 on average volume. Throughout the day, 25,802 shares of Electromed exchanged hands as compared to its average daily volume of 23,700 shares. The stock ranged in price between $1.37-$1.56 after having opened the day at $1.56 as compared to the previous trading day's close of $1.54.

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy products. Electromed has a market cap of $12.3 million and is part of the health care sector. Shares are down 55.6% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Electromed a buy, no analysts rate it a sell, and none rate it a hold.

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.

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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.

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