3 Stocks Pushing The Health Services Industry Lower

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.

The Health Services industry as a whole closed the day up 0.3% versus the S&P 500, which was up 0.5%. Laggards within the Health Services industry included VirtualScopics ( VSCP), down 4.3%, American Shared Hospital Services ( AMS), down 2.9%, Daxor ( DXR), down 3.4%, Akers Biosciences ( AKER), down 6.0% and Neovasc ( NVCN), down 7.5%.

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

Akers Biosciences ( AKER) is one of the companies that pushed the Health Services industry lower today. Akers Biosciences was down $0.19 (6.0%) to $2.96 on light volume. Throughout the day, 9,255 shares of Akers Biosciences exchanged hands as compared to its average daily volume of 15,200 shares. The stock ranged in price between $2.82-$3.05 after having opened the day at $3.05 as compared to the previous trading day's close of $3.15.

Akers Biosciences has a market cap of $15.9 million and is part of the health care sector. Shares are down 53.6% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Akers Biosciences a buy, no analysts rate it a sell, and none rate it a hold.

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At the close, Daxor ( DXR) was down $0.24 (3.4%) to $6.77 on light volume. Throughout the day, 100 shares of Daxor exchanged hands as compared to its average daily volume of 5,500 shares. The stock ranged in price between $6.77-$6.77 after having opened the day at $6.77 as compared to the previous trading day's close of $7.01.

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 $28.8 million and is part of the health care sector. Shares are up 2.6% year-to-date as of the close of trading on Friday.

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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.
  • The share price of DAXOR CORP has not done very well: it is down 5.74% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.

VirtualScopics ( VSCP) was another company that pushed the Health Services industry lower today. VirtualScopics was down $0.18 (4.3%) to $3.99 on light volume. Throughout the day, 1,650 shares of VirtualScopics exchanged hands as compared to its average daily volume of 6,000 shares. The stock ranged in price between $3.95-$4.19 after having opened the day at $3.95 as compared to the previous trading day's close of $4.17.

VirtualScopics, Inc. provides imaging solutions for the pharmaceutical, biotechnology, and medical device industries. VirtualScopics has a market cap of $12.5 million and is part of the health care sector. Shares are up 20.5% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates VirtualScopics a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates VirtualScopics as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on VSCP go as follows:

  • The gross profit margin for VIRTUALSCOPICS INC is currently lower than what is desirable, coming in at 32.24%. Regardless of VSCP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, VSCP's net profit margin of -27.44% significantly underperformed when compared to the industry average.
  • VSCP has underperformed the S&P 500 Index, declining 19.62% from its price level of one year ago. 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, VIRTUALSCOPICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • VSCP, with its decline in revenue, underperformed when compared the industry average of 21.9%. Since the same quarter one year prior, revenues slightly dropped by 7.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has significantly increased by 66.23% to -$0.42 million when compared to the same quarter last year. Despite an increase in cash flow, VIRTUALSCOPICS INC's average is still marginally south of the industry average growth rate of 67.34%.

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