3 Stocks Raising 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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 30.89 points (-0.2%) at 17,068 as of Tuesday, Sept. 2, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,485 issues advancing vs. 1,589 declining with 141 unchanged.

The Drugs industry as a whole closed the day down 0.2% versus the S&P 500, which was down 0.1%. Top gainers within the Drugs industry included Aoxing Pharmaceutical ( AXN), up 5.6%, ImmuCell ( ICCC), up 1.6%, Evoke Pharma ( EVOK), up 1.8%, MediciNova ( MNOV), up 11.1% and Ruthigen ( RTGN), up 10.6%.

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 $0.26 (11.1%) to $2.61 on heavy volume. Throughout the day, 401,813 shares of MediciNova exchanged hands as compared to its average daily volume of 31,200 shares. The stock ranged in a price between $2.37-$2.64 after having opened the day at $2.40 as compared to the previous trading day's close of $2.35.

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 $56.7 million and is part of the health care sector. Shares are up 9.8% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate MediciNova a buy, no analysts rate it a sell, and none rate it a hold.

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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:

  • In its most recent trading session, MNOV 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 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, Evoke Pharma ( EVOK) was up $0.12 (1.8%) to $6.79 on light volume. Throughout the day, 3,973 shares of Evoke Pharma exchanged hands as compared to its average daily volume of 10,600 shares. The stock ranged in a price between $6.56-$6.79 after having opened the day at $6.66 as compared to the previous trading day's close of $6.67.

Evoke Pharma has a market cap of $40.7 million and is part of the health care sector. Shares are down 10.5% 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.

Aoxing Pharmaceutical ( AXN) was another company that pushed the Drugs industry higher today. Aoxing Pharmaceutical was up $0.01 (5.6%) to $0.28 on light volume. Throughout the day, 5,509 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 22,400 shares. The stock ranged in a price between $0.28-$0.30 after having opened the day at $0.29 as compared to the previous trading day's close of $0.27.

Aoxing Pharmaceutical Company, Inc., a specialty pharmaceutical company, researches, develops, manufactures, and distributes various narcotic, pain-management, and addiction treatment pharmaceutical products primarily in the People's Republic of China. Aoxing Pharmaceutical has a market cap of $13.2 million and is part of the health care sector. Shares are up 6.3% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Aoxing Pharmaceutical a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Aoxing Pharmaceutical as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from TheStreet Ratings analysis on AXN go as follows:

  • Net operating cash flow has decreased to -$4.35 million or 41.91% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • AOXING PHARMACEUTICAL CO INC has improved earnings per share by 20.0% 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, AOXING PHARMACEUTICAL CO INC reported poor results of -$0.34 versus -$0.32 in the prior year.
  • 43.50% is the gross profit margin for AOXING PHARMACEUTICAL CO INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, AXN's net profit margin of -74.48% significantly underperformed when compared to the industry average.
  • The stock has risen over the past year and, it has performed in line with the S&P 500 thus far. 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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 29.8% when compared to the same quarter one year prior, rising from -$2.60 million to -$1.82 million.

You can view the full analysis from the report here: Aoxing Pharmaceutical 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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