3 Stocks Pushing The Health Care Sector Lower

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The Health Care sector as a whole closed the day down 1.6% versus the S&P 500, which was down 0.1%. Laggards within the Health Care sector included Aoxing Pharmaceutical ( AXN), down 2.6%, XTL Biopharmaceuticals ( XTLB), down 6.1%, Bio-Rad Laboratories ( BIO.B), down 2.1%, Escalon Medical ( ESMC), down 2.5% and ImmuCell ( ICCC), down 5.7%.

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

Grifols ( GRFS) is one of the companies that pushed the Health Care sector lower today. Grifols was down $0.88 (2.3%) to $36.87 on average volume. Throughout the day, 544,049 shares of Grifols exchanged hands as compared to its average daily volume of 689,200 shares. The stock ranged in price between $36.38-$37.68 after having opened the day at $37.68 as compared to the previous trading day's close of $37.75.

Grifols, S.A., a specialty biopharmaceutical company, develops, manufactures, and distributes a range of plasma derivative products primarily in the European Union, Spain, the United States, Canada, and internationally. Grifols has a market cap of $13.1 billion and is part of the drugs industry. Shares are up 4.5% year-to-date as of the close of trading on Friday. Currently there are 4 analysts who rate Grifols a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Grifols as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from TheStreet Ratings analysis on GRFS go as follows:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 27.98% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GRFS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • GRIFOLS SA has improved earnings per share by 17.1% 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. We feel that this trend should continue. During the past fiscal year, GRIFOLS SA increased its bottom line by earning $1.39 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($2.39 versus $1.39).
  • GRFS's revenue growth trails the industry average of 43.5%. Since the same quarter one year prior, revenues rose by 20.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, GRIFOLS SA's return on equity exceeds that of both the industry average and the S&P 500.

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

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At the close, XTL Biopharmaceuticals ( XTLB) was down $0.13 (6.1%) to $2.01 on light volume. Throughout the day, 1,300 shares of XTL Biopharmaceuticals exchanged hands as compared to its average daily volume of 4,100 shares. The stock ranged in price between $2.01-$2.10 after having opened the day at $2.01 as compared to the previous trading day's close of $2.14.

XTL Biopharmaceuticals Ltd., a biopharmaceutical company, is engaged in the acquisition and development of pharmaceutical products for the treatment of unmet medical needs. XTL Biopharmaceuticals has a market cap of $25.0 million and is part of the drugs industry. Shares are down 26.2% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate XTL Biopharmaceuticals a buy, 1 analyst rates it a sell, and none rate it a hold.

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TheStreet Ratings rates XTL Biopharmaceuticals 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 XTLB go as follows:

  • XTLB'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 64.30%, 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 43.9% when compared to the same quarter one year prior, rising from -$1.00 million to -$0.56 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, XTL BIOPHARMACEUTICALS's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for XTL BIOPHARMACEUTICALS is currently very high, coming in at 73.42%. Regardless of XTLB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, XTLB's net profit margin of -148.15% significantly underperformed when compared to the industry average.
  • The revenue fell significantly faster than the industry average of 43.5%. Since the same quarter one year prior, revenues fell by 25.8%. 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: XTL Biopharmaceuticals 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 lower today. Aoxing Pharmaceutical was down $0.01 (2.6%) to $0.25 on light volume. Throughout the day, 400 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 25,600 shares. The stock ranged in price between $0.25-$0.26 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 $14.6 million and is part of the drugs industry. Shares are up 17.7% year-to-date as of the close of trading on Friday.

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.

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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

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