3 Stocks Pushing The Health Care Sector Lower

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.

The Health Care sector as a whole closed the day down 0.6% versus the S&P 500, which was down 0.6%. Laggards within the Health Care sector included XTL Biopharmaceuticals ( XTLB), down 2.2%, SunLink Health Systems ( SSY), down 3.0%, Daxor ( DXR), down 2.2%, VirtualScopics ( VSCP), down 6.1% and Electromed ( ELMD), down 2.8%.

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

VirtualScopics ( VSCP) is one of the companies that pushed the Health Care sector lower today. VirtualScopics was down $0.29 (6.1%) to $4.49 on average volume. Throughout the day, 5,465 shares of VirtualScopics exchanged hands as compared to its average daily volume of 4,500 shares. The stock ranged in price between $4.49-$4.76 after having opened the day at $4.59 as compared to the previous trading day's close of $4.78.

VirtualScopics, Inc. provides imaging solutions for the pharmaceutical, biotechnology, and medical device industries. VirtualScopics has a market cap of $14.3 million and is part of the drugs industry. Shares are up 38.2% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates VirtualScopics a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates VirtualScopics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on VSCP 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 Life Sciences Tools & Services industry. The net income has significantly decreased by 646.3% when compared to the same quarter one year ago, falling from $0.13 million to -$0.73 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 Life Sciences Tools & Services industry and the overall market, VIRTUALSCOPICS 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 -$1.16 million or 716.90% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • This stock has managed to decline in share value by 5.00% over the past twelve months. 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.
  • The revenue fell significantly faster than the industry average of 21.7%. Since the same quarter one year prior, revenues fell by 28.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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

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At the close, Daxor ( DXR) was down $0.15 (2.2%) to $6.55 on heavy volume. Throughout the day, 9,401 shares of Daxor exchanged hands as compared to its average daily volume of 2,600 shares. The stock ranged in price between $6.55-$6.60 after having opened the day at $6.59 as compared to the previous trading day's close of $6.70.

Daxor Corporation, a medical device manufacturing company, offers biotech services in the United States. The company develops and markets BVA-100 Blood Volume Analyzer, an instrument that measures human blood volume. Daxor has a market cap of $26.4 million and is part of the drugs industry. Shares are down 1.9% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Daxor 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 generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on DXR go as follows:

  • DAXOR 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, DAXOR CORP swung to a loss, reporting -$1.69 versus $1.17 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 165.8% when compared to the same quarter one year ago, falling from $2.27 million to -$1.49 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 Health Care Equipment & Supplies industry and the overall market, DAXOR CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The share price of DAXOR CORP has not done very well: it is down 10.60% 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.
  • The gross profit margin for DAXOR CORP is currently very high, coming in at 71.27%. 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 -404.33% is in-line with the industry average.

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

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XTL Biopharmaceuticals ( XTLB) was another company that pushed the Health Care sector lower today. XTL Biopharmaceuticals was down $0.05 (2.2%) to $2.10 on light volume. Throughout the day, 501 shares of XTL Biopharmaceuticals exchanged hands as compared to its average daily volume of 3,800 shares. The stock ranged in price between $2.10-$2.10 after having opened the day at $2.10 as compared to the previous trading day's close of $2.15.

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 $23.8 million and is part of the drugs industry. Shares are down 25.9% 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.

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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 60.63%, 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 43.1%. 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.

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