3 Stocks Pushing The Health Care Sector Lower

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The Health Care sector as a whole closed the day down 0.9% versus the S&P 500, which was down 0.7%. Laggards within the Health Care sector included China Pharma ( CPHI), down 4.3%, Escalon Medical ( ESMC), down 3.0%, Oragenics ( OGEN), down 9.2%, EntreMed ( ENMD), down 1.8% and CAS Medical Systems ( CASM), down 6.7%.

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

EntreMed ( ENMD) is one of the companies that pushed the Health Care sector lower today. EntreMed was down $0.03 (1.8%) to $1.66 on heavy volume. Throughout the day, 32,223 shares of EntreMed exchanged hands as compared to its average daily volume of 20,800 shares. The stock ranged in price between $1.61-$1.70 after having opened the day at $1.68 as compared to the previous trading day's close of $1.69.

EntreMed has a market cap of $47.1 million and is part of the drugs industry. Shares are up 11.9% year-to-date as of the close of trading on Monday.

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At the close, Oragenics ( OGEN) was down $0.13 (9.2%) to $1.28 on heavy volume. Throughout the day, 33,491 shares of Oragenics exchanged hands as compared to its average daily volume of 21,400 shares. The stock ranged in price between $1.27-$1.42 after having opened the day at $1.42 as compared to the previous trading day's close of $1.41.

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 $50.7 million and is part of the drugs industry. Shares are down 50.2% 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.

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TheStreet Ratings rates Oragenics as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on OGEN go as follows:

  • 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 55.42%, 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, 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 8.6% when compared to the same quarter one year prior, going from -$2.07 million to -$1.90 million.
  • 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.
  • Net operating cash flow has increased to -$1.70 million or 15.15% when compared to the same quarter last year. Despite an increase in cash flow of 15.15%, ORAGENICS INC is still growing at a significantly lower rate than the industry average of 101.54%.
  • The gross profit margin for ORAGENICS INC is rather high; currently it is at 61.06%. 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 -625.41% is in-line with the industry average.

You can view the full analysis from the report here: Oragenics Ratings Report

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China Pharma ( CPHI) was another company that pushed the Health Care sector lower today. China Pharma was down $0.01 (4.3%) to $0.22 on light volume. Throughout the day, 48,602 shares of China Pharma exchanged hands as compared to its average daily volume of 81,800 shares. The stock ranged in price between $0.22-$0.23 after having opened the day at $0.23 as compared to the previous trading day's close of $0.23.

China Pharma Holdings, Inc. develops, manufactures, and markets generic and branded pharmaceutical, and biochemical products to hospitals and private retailers in the People's Republic of China. China Pharma has a market cap of $10.5 million and is part of the drugs industry. Shares are down 30.4% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates China Pharma 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 weak operating cash flow.

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Highlights from TheStreet Ratings analysis on CPHI go as follows:

  • CHINA PHARMA HOLDINGS 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, CHINA PHARMA HOLDINGS INC swung to a loss, reporting -$0.45 versus $0.10 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 Pharmaceuticals industry. The net income has significantly decreased by 93.6% when compared to the same quarter one year ago, falling from -$4.46 million to -$8.64 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 Pharmaceuticals industry and the overall market, CHINA PHARMA HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.08 million or 103.94% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, CPHI 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.

You can view the full analysis from the report here: China Pharma Ratings Report

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