3 Drugs Stocks Nudging 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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 76 points (0.4%) at 17,077 as of Monday, Aug. 25, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,872 issues advancing vs. 1,174 declining with 144 unchanged.

The Drugs industry as a whole closed the day up 1.3% versus the S&P 500, which was up 0.5%. Top gainers within the Drugs industry included China Pharma ( CPHI), up 3.6%, Cellectar Biosciences ( CLRB), up 3.6%, Reliv' International ( RELV), up 2.7%, Genvec ( GNVC), up 2.5% and Echo Therapeutics ( ECTE), up 4.5%.

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

Reliv' International ( RELV) is one of the companies that pushed the Drugs industry higher today. Reliv' International was up $0.03 (2.7%) to $1.20 on light volume. Throughout the day, 3,772 shares of Reliv' International exchanged hands as compared to its average daily volume of 38,300 shares. The stock ranged in a price between $1.15-$1.21 after having opened the day at $1.15 as compared to the previous trading day's close of $1.17.

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 $14.9 million and is part of the health care sector. Shares are down 58.4% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Reliv' International a buy, no analysts rate it a sell, and none rate it a hold.

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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 largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on RELV go as follows:

  • Although RELV's debt-to-equity ratio of 0.22 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 0.75 is somewhat weak and could be cause for future problems.
  • The gross profit margin for RELIV INTERNATIONAL INC is currently very high, coming in at 79.27%. Regardless of RELV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RELV's net profit margin of -1.99% significantly underperformed when compared to the industry average.
  • RELV'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 45.63%, which is also worse than the performance of the S&P 500 Index. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Personal Products industry and the overall market, RELIV INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.

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

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At the close, Cellectar Biosciences ( CLRB) was up $0.11 (3.6%) to $3.16 on heavy volume. Throughout the day, 66,884 shares of Cellectar Biosciences exchanged hands as compared to its average daily volume of 11,500 shares. The stock ranged in a price between $3.10-$3.35 after having opened the day at $3.24 as compared to the previous trading day's close of $3.05.

Cellectar Biosciences has a market cap of $8.6 million and is part of the health care sector. Shares are unchanged year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

China Pharma ( CPHI) was another company that pushed the Drugs industry higher today. China Pharma was up $0.01 (3.6%) to $0.26 on light volume. Throughout the day, 13,356 shares of China Pharma exchanged hands as compared to its average daily volume of 87,800 shares. The stock ranged in a price between $0.25-$0.29 after having opened the day at $0.27 as compared to the previous trading day's close of $0.25.

China Pharma Holdings, Inc. develops, manufactures, and markets generic and branded pharmaceutical, and biochemical products to hospitals and private retailers in the People's Republic of China. China Pharma has a market cap of $11.1 million and is part of the health care sector. Shares are down 26.9% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate China Pharma a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates China Pharma as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from TheStreet Ratings analysis on CPHI 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 Pharmaceuticals industry and the overall market, CHINA PHARMA HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • CHINA PHARMA HOLDINGS INC has improved earnings per share by 16.7% 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, CHINA PHARMA HOLDINGS INC swung to a loss, reporting -$0.45 versus $0.10 in the prior year.
  • CPHI, with its decline in revenue, slightly underperformed the industry average of 4.6%. Since the same quarter one year prior, revenues fell by 14.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 41.65% is the gross profit margin for CHINA PHARMA HOLDINGS INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -33.63% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 124.81% to $2.49 million when compared to the same quarter last year. In addition, CHINA PHARMA HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -1.19%.

You can view the full analysis from the report here: China Pharma 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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