3 Drugs Stocks Pushing Industry Growth

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 101 points (0.6%) at 17,132 as of Tuesday, Sept. 16, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,961 issues advancing vs. 1,099 declining with 138 unchanged.

The Drugs industry as a whole closed the day down 0.3% versus the S&P 500, which was up 0.7%. Top gainers within the Drugs industry included XTL Biopharmaceuticals ( XTLB), up 2.0%, Celator Pharmaceuticals ( CPXX), up 2.5%, Chembio Diagnostics ( CEMI), up 1.6%, Cormedix ( CRMD), up 3.5% and Alliqua ( ALQA), up 3.7%.

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

Chembio Diagnostics ( CEMI) is one of the companies that pushed the Drugs industry higher today. Chembio Diagnostics was up $0.06 (1.6%) to $3.52 on light volume. Throughout the day, 5,045 shares of Chembio Diagnostics exchanged hands as compared to its average daily volume of 25,100 shares. The stock ranged in a price between $3.45-$3.52 after having opened the day at $3.46 as compared to the previous trading day's close of $3.46.

Chembio Diagnostics has a market cap of $33.6 million and is part of the health care sector. Shares are up 3.9% year-to-date as of the close of trading on Monday.

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At the close, Celator Pharmaceuticals ( CPXX) was up $0.07 (2.5%) to $2.82 on average volume. Throughout the day, 38,820 shares of Celator Pharmaceuticals exchanged hands as compared to its average daily volume of 28,100 shares. The stock ranged in a price between $2.71-$2.83 after having opened the day at $2.71 as compared to the previous trading day's close of $2.75.

Celator Pharmaceuticals has a market cap of $73.3 million and is part of the health care sector. Shares are down 13.5% year-to-date as of the close of trading on Monday.

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XTL Biopharmaceuticals ( XTLB) was another company that pushed the Drugs industry higher today. XTL Biopharmaceuticals was up $0.04 (2.0%) to $2.05 on light volume. Throughout the day, 2,239 shares of XTL Biopharmaceuticals exchanged hands as compared to its average daily volume of 4,000 shares. The stock ranged in a price between $2.05-$2.16 after having opened the day at $2.14 as compared to the previous trading day's close of $2.01.

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 $24.9 million and is part of the health care sector. Shares are down 30.7% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate XTL Biopharmaceuticals a buy, 1 analyst rates it a sell, and none rate it a hold.

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.

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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