3 Stocks Pushing The Drugs Industry 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 Drugs industry as a whole closed the day down 1.4% versus the S&P 500, which was down 1.6%. Laggards within the Drugs industry included Aurinia Pharmaceuticals ( AUPH), down 4.3%, Aoxing Pharmaceutical ( AXN), down 4.8%, XTL Biopharmaceuticals ( XTLB), down 5.6%, China Pharma ( CPHI), down 3.5% and Oragenics ( OGEN), down 8.2%.

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

China Pharma ( CPHI) is one of the companies that pushed the Drugs industry lower today. China Pharma was down $0.01 (3.5%) to $0.25 on light volume. Throughout the day, 43,010 shares of China Pharma exchanged hands as compared to its average daily volume of 78,200 shares. The stock ranged in price between $0.25-$0.27 after having opened the day at $0.26 as compared to the previous trading day's close of $0.26.

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 $10.9 million and is part of the health care sector. Shares are down 24.6% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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, weak operating cash flow and generally disappointing historical performance in the stock itself.

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.
  • The share price of CHINA PHARMA HOLDINGS INC has not done very well: it is down 19.36% 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.

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

At the close, XTL Biopharmaceuticals ( XTLB) was down $0.12 (5.6%) to $1.98 on light volume. Throughout the day, 1,000 shares of XTL Biopharmaceuticals exchanged hands as compared to its average daily volume of 3,900 shares. The stock ranged in price between $1.98-$1.98 after having opened the day at $1.98 as compared to the previous trading day's close of $2.10.

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 $24.5 million and is part of the health care sector. Shares are down 27.6% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate XTL Biopharmaceuticals a buy, 1 analyst rates it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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 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.

Aoxing Pharmaceutical ( AXN) was another company that pushed the Drugs industry lower today. Aoxing Pharmaceutical was down $0.01 (4.8%) to $0.20 on heavy volume. Throughout the day, 152,078 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 29,400 shares. The stock ranged in price between $0.19-$0.22 after having opened the day at $0.21 as compared to the previous trading day's close of $0.21.

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 $11.0 million and is part of the health care sector. Shares are down 15.8% year-to-date as of the close of trading on Wednesday.

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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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.

If you liked this article you might like

3 Stocks Pushing The Drugs Industry Lower

3 Stocks Pushing The Drugs Industry Lower

3 Health Care Stocks Nudging The Sector Higher

3 Health Care Stocks Nudging The Sector Higher

3 Drugs Stocks Nudging The Industry Higher

3 Drugs Stocks Nudging The Industry Higher

3 Health Care Stocks Pushing The Sector Higher

3 Health Care Stocks Pushing The Sector Higher

3 Stocks Improving Performance Of The Drugs Industry

3 Stocks Improving Performance Of The Drugs Industry