3 Stocks Pushing The Drugs Industry Lower

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The Drugs industry as a whole closed the day down 2.0% versus the S&P 500, which was down 0.8%. Laggards within the Drugs industry included Aoxing Pharmaceutical ( AXN), down 10.4%, Oragenics ( OGEN), down 8.0%, ImmuCell ( ICCC), down 2.1%, Prima Biomed ( PBMD), down 2.9% and Celsus Therapeutics ( CLTX), down 5.2%.

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

Incyte ( INCY) is one of the companies that pushed the Drugs industry lower today. Incyte was down $1.91 (3.9%) to $47.41 on average volume. Throughout the day, 1,039,621 shares of Incyte exchanged hands as compared to its average daily volume of 962,900 shares. The stock ranged in price between $46.73-$49.55 after having opened the day at $49.23 as compared to the previous trading day's close of $49.32.

Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary small molecule drugs primarily for oncology and inflammation. Incyte has a market cap of $8.2 billion and is part of the health care sector. Shares are down 2.6% year-to-date as of the close of trading on Friday. Currently there are 11 analysts who rate Incyte a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Incyte as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on INCY 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 1334.2% when compared to the same quarter one year ago, falling from -$2.57 million to -$36.87 million.
  • Net operating cash flow has significantly decreased to -$14.56 million or 280.13% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • INCYTE CORP 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 year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, INCYTE CORP reported poor results of -$0.54 versus -$0.36 in the prior year. This year, the market expects an improvement in earnings (-$0.40 versus -$0.54).
  • The revenue fell significantly faster than the industry average of 43.1%. Since the same quarter one year prior, revenues slightly dropped by 2.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to its closing price of one year ago, INCY's share price has jumped by 34.65%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in INCY do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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

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At the close, Oragenics ( OGEN) was down $0.11 (8.0%) to $1.27 on light volume. Throughout the day, 9,206 shares of Oragenics exchanged hands as compared to its average daily volume of 18,600 shares. The stock ranged in price between $1.27-$1.35 after having opened the day at $1.35 as compared to the previous trading day's close of $1.38.

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 $44.9 million and is part of the health care sector. Shares are down 55.9% year-to-date as of the close of trading on Friday. 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 58.95%, 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 100.84%.
  • 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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Aoxing Pharmaceutical ( AXN) was another company that pushed the Drugs industry lower today. Aoxing Pharmaceutical was down $0.02 (10.4%) to $0.22 on heavy volume. Throughout the day, 218,242 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 25,600 shares. The stock ranged in price between $0.21-$0.35 after having opened the day at $0.29 as compared to the previous trading day's close of $0.24.

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 $12.4 million and is part of the health care sector. Shares are down 0.0% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Aoxing Pharmaceutical as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

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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.
  • AXN has underperformed the S&P 500 Index, declining 10.72% from its price level of one year ago. 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.
  • 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 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.

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