3 Stocks Improving Performance Of The Drugs Industry

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 up 11 points (0.1%) at 17,078 as of Wednesday, Sept. 3, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,398 issues advancing vs. 1,669 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 8.8%, Tianyin Pharmaceutical ( TPI), up 19.2%, Reliv' International ( RELV), up 1.7%, Cleveland BioLabs ( CBLI), up 39.5% and Vermillion ( VRML), up 8.6%.

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

Cleveland BioLabs ( CBLI) is one of the companies that pushed the Drugs industry higher today. Cleveland BioLabs was up $0.16 (39.5%) to $0.56 on heavy volume. Throughout the day, 4,544,961 shares of Cleveland BioLabs exchanged hands as compared to its average daily volume of 190,900 shares. The stock ranged in a price between $0.48-$0.69 after having opened the day at $0.49 as compared to the previous trading day's close of $0.40.

Cleveland BioLabs, Inc., a biopharmaceutical company, focuses on developing pharmaceuticals designed to address diseases with significant medical need. Cleveland BioLabs has a market cap of $22.8 million and is part of the health care sector. Shares are down 65.6% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Cleveland BioLabs a buy, no analysts rate it a sell, and 1 rates 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 Cleveland BioLabs as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CBLI go as follows:

  • 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 Biotechnology industry. The net income has significantly decreased by 30.2% when compared to the same quarter one year ago, falling from -$3.04 million to -$3.96 million.
  • Looking at the price performance of CBLI's shares over the past 12 months, there is not much good news to report: the stock is down 76.00%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier 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.
  • CLEVELAND BIOLABS INC's earnings per share declined by 14.3% 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, CLEVELAND BIOLABS INC continued to lose money by earning -$0.39 versus -$0.52 in the prior year.
  • CBLI, 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 65.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Net operating cash flow has increased to -$4.89 million or 31.28% when compared to the same quarter last year. Despite an increase in cash flow of 31.28%, CLEVELAND BIOLABS INC is still growing at a significantly lower rate than the industry average of 101.26%.

You can view the full analysis from the report here: Cleveland BioLabs 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, Reliv' International ( RELV) was up $0.02 (1.7%) to $1.24 on light volume. Throughout the day, 4,858 shares of Reliv' International exchanged hands as compared to its average daily volume of 37,500 shares. The stock ranged in a price between $1.22-$1.24 after having opened the day at $1.22 as compared to the previous trading day's close of $1.22.

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 $15.5 million and is part of the health care sector. Shares are down 56.6% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Reliv' International 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 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 49.35%, 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

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 $0.02 (8.8%) to $0.30 on heavy volume. Throughout the day, 379,804 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 22,400 shares. The stock ranged in a price between $0.24-$0.30 after having opened the day at $0.29 as compared to the previous trading day's close of $0.28.

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 12.2% year-to-date as of the close of trading on Tuesday. 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.

More from Markets

Stocks Rise Sharply, Facebook Ignites a Nasdaq Rally

Stocks Rise Sharply, Facebook Ignites a Nasdaq Rally

Jim Cramer: Visa Is a Technology Company That Masquerades as a Financial Company

Jim Cramer: Visa Is a Technology Company That Masquerades as a Financial Company

Jim Cramer: Chipotle Shares Are Probably Done Going Down

Jim Cramer: Chipotle Shares Are Probably Done Going Down

Jim Cramer: This Is a Sad Time for Southwest Airlines

Jim Cramer: This Is a Sad Time for Southwest Airlines

Jim Cramer Just Spoke to Larry Kudlow About the China Trade Negotiations

Jim Cramer Just Spoke to Larry Kudlow About the China Trade Negotiations