3 Stocks Pushing The Drugs 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 30 points (0.2%) at 17,107 as of Tuesday, Aug. 26, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,006 issues advancing vs. 1,020 declining with 179 unchanged.

The Drugs industry as a whole closed the day up 1.5% versus the S&P 500, which was up 0.1%. Top gainers within the Drugs industry included Oragenics ( OGEN), up 3.0%, Cellectar Biosciences ( CLRB), up 2.0%, MediciNova ( MNOV), up 8.2%, Merus Labs International ( MSLI), up 1.6% and Cleveland BioLabs ( CBLI), up 2.4%.

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

MediciNova ( MNOV) is one of the companies that pushed the Drugs industry higher today. MediciNova was up $0.17 (8.2%) to $2.25 on heavy volume. Throughout the day, 307,090 shares of MediciNova exchanged hands as compared to its average daily volume of 20,300 shares. The stock ranged in a price between $2.17-$2.39 after having opened the day at $2.26 as compared to the previous trading day's close of $2.08.

MediciNova, Inc., a biopharmaceutical company, focuses on acquiring and developing novel and small molecule therapeutics for the treatment of serious diseases with unmet medical needs for the United States market. MediciNova has a market cap of $49.5 million and is part of the health care sector. Shares are down 2.8% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate MediciNova 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 MediciNova as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on MNOV go as follows:

  • MNOV has underperformed the S&P 500 Index, declining 16.27% 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.
  • The gross profit margin for MEDICINOVA INC is currently extremely low, coming in at 0.00%. Despite the low profit margin, it has increased significantly from the same period last year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, MEDICINOVA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income increased by 2.8% when compared to the same quarter one year prior, going from -$2.42 million to -$2.35 million.
  • MNOV, with its very weak revenue results, has greatly underperformed against the industry average of 43.4%. Since the same quarter one year prior, revenues plummeted by 100.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here: MediciNova 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, Cellectar Biosciences ( CLRB) was up $0.06 (2.0%) to $3.22 on light volume. Throughout the day, 7,224 shares of Cellectar Biosciences exchanged hands as compared to its average daily volume of 11,800 shares. The stock ranged in a price between $3.16-$3.23 after having opened the day at $3.16 as compared to the previous trading day's close of $3.16.

Cellectar Biosciences has a market cap of $8.8 million and is part of the health care sector. Shares are unchanged year-to-date as of the close of trading on Monday.

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

Oragenics ( OGEN) was another company that pushed the Drugs industry higher today. Oragenics was up $0.05 (3.0%) to $1.69 on light volume. Throughout the day, 2,054 shares of Oragenics exchanged hands as compared to its average daily volume of 19,800 shares. The stock ranged in a price between $1.64-$1.69 after having opened the day at $1.69 as compared to the previous trading day's close of $1.64.

Oragenics, Inc. focuses on the discovery, development, and commercialization of various technologies associated with oral health, antibiotics, and other general health benefits. Oragenics has a market cap of $61.5 million and is part of the health care sector. Shares are down 39.5% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Oragenics a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Oragenics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on OGEN go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has decreased by 3.2% when compared to the same quarter one year ago, dropping from -$1.59 million to -$1.64 million.
  • Net operating cash flow has declined marginally to -$1.58 million or 0.18% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • OGEN'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 43.67%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, ORAGENICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ORAGENICS INC is rather high; currently it is at 65.58%. Regardless of OGEN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OGEN's net profit margin of -763.25% significantly underperformed when compared to the industry average.

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

If you liked this article you might like

Versartis Drops on Q3 Numbers, Hires Adviser -- Biotech Movers

Versartis Drops on Q3 Numbers, Hires Adviser -- Biotech Movers

Celgene Falls After Updates to 2017 Guidance, 2020 Targets -- Biotech Movers

Celgene Falls After Updates to 2017 Guidance, 2020 Targets -- Biotech Movers

Biotech Movers: Akebia Soars on Expanded Partnership With Otsuka

Biotech Movers: Akebia Soars on Expanded Partnership With Otsuka

MedicNova (MNOV) Stock is Gaining Today After Drug Receives Fast Track Designation

MedicNova (MNOV) Stock is Gaining Today After Drug Receives Fast Track Designation

Five Biotech Firms Whose Stock-Promoting Efforts Didn't Pay Off

Five Biotech Firms Whose Stock-Promoting Efforts Didn't Pay Off