3 Health Care Stocks Pushing The Sector 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 25.94 points (-0.2%) at 17,111 as of Monday, Sept. 8, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,156 issues advancing vs. 1,888 declining with 146 unchanged.

The Health Care sector as a whole closed the day up 1.2% versus the S&P 500, which was down 0.3%. Top gainers within the Health Care sector included Aoxing Pharmaceutical ( AXN), up 2.9%, SunLink Health Systems ( SSY), up 3.1%, Allied Healthcare Products ( AHPI), up 7.1%, Vision-Sciences ( VSCI), up 2.0% and Tianyin Pharmaceutical ( TPI), up 2.5%.

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

Vision-Sciences ( VSCI) is one of the companies that pushed the Health Care sector higher today. Vision-Sciences was up $0.02 (2.0%) to $1.03 on heavy volume. Throughout the day, 58,995 shares of Vision-Sciences exchanged hands as compared to its average daily volume of 33,200 shares. The stock ranged in a price between $0.92-$1.07 after having opened the day at $1.00 as compared to the previous trading day's close of $1.01.

Vision-Sciences, Inc., through its subsidiaries, designs, develops, manufactures, and markets endoscopy products. It operates through Medical and Industrial segments. Vision-Sciences has a market cap of $48.6 million and is part of the drugs industry. Shares are up 1.0% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Vision-Sciences 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 Vision-Sciences as a sell. The area that we feel has been the company's primary weakness has been its relatively poor performance when compared with the S&P 500 during the past year.

Highlights from TheStreet Ratings analysis on VSCI go as follows:

  • In its most recent trading session, VSCI 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. 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.
  • 35.05% is the gross profit margin for VISION-SCIENCES INC which we consider to be strong. 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 -52.69% is in-line with the industry average.
  • Net operating cash flow has increased to -$0.95 million or 33.40% when compared to the same quarter last year. In addition, VISION-SCIENCES INC has also vastly surpassed the industry average cash flow growth rate of -20.87%.
  • VISION-SCIENCES INC has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, VISION-SCIENCES INC continued to lose money by earning -$0.16 versus -$0.22 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Equipment & Supplies industry average. The net income increased by 18.8% when compared to the same quarter one year prior, going from -$2.43 million to -$1.98 million.

You can view the full analysis from the report here: Vision-Sciences 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, Allied Healthcare Products ( AHPI) was up $0.15 (7.1%) to $2.26 on average volume. Throughout the day, 12,614 shares of Allied Healthcare Products exchanged hands as compared to its average daily volume of 12,500 shares. The stock ranged in a price between $2.18-$2.26 after having opened the day at $2.21 as compared to the previous trading day's close of $2.11.

Allied Healthcare Products, Inc. manufactures, markets, and distributes respiratory care products, medical gas equipment, and emergency medical products in Canada, Mexico, Central and South America, Europe, the Middle East, and the Far East. Allied Healthcare Products has a market cap of $16.4 million and is part of the drugs industry. Shares are down 10.4% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Allied Healthcare Products 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 Allied Healthcare Products 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, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on AHPI go as follows:

  • ALLIED HEALTHCARE PRODS INC 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 reported a trend of declining earnings per share over the past two years. During the past fiscal year, ALLIED HEALTHCARE PRODS INC reported poor results of -$0.15 versus -$0.06 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 247.3% when compared to the same quarter one year ago, falling from -$0.28 million to -$0.97 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ALLIED HEALTHCARE PRODS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ALLIED HEALTHCARE PRODS INC is rather low; currently it is at 22.80%. Regardless of AHPI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AHPI's net profit margin of -10.63% significantly underperformed when compared to the industry average.
  • The share price of ALLIED HEALTHCARE PRODS INC has not done very well: it is down 16.62% 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.

You can view the full analysis from the report here: Allied Healthcare Products 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 Health Care sector higher today. Aoxing Pharmaceutical was up $0.01 (2.9%) to $0.27 on light volume. Throughout the day, 17,602 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 26,700 shares. The stock ranged in a price between $0.26-$0.30 after having opened the day at $0.26 as compared to the previous trading day's close of $0.26.

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 $15.0 million and is part of the drugs industry. Shares are up 20.2% 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.
  • Investors have driven up the company's shares by 36.31% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in AXN do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • 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

Dow, S&P Rise for the First Time in 3 Sessions While Nasdaq Also Halts Decline

Dow, S&P Rise for the First Time in 3 Sessions While Nasdaq Also Halts Decline

Recession Could Hit a Vulnerable U.S. Economy in 2019 - What Investors Should Do

Recession Could Hit a Vulnerable U.S. Economy in 2019 - What Investors Should Do

Economist Perspective: Supply, Supply, Supply

Economist Perspective: Supply, Supply, Supply

Keep Calm and Trade On: A NYSE Trader Breaks Down Market Volatility

Keep Calm and Trade On: A NYSE Trader Breaks Down Market Volatility

Morning Jolt: The Retail Sector Kicks Holiday Shopping Off With a Bang

Morning Jolt: The Retail Sector Kicks Holiday Shopping Off With a Bang