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 0.7%. Laggards within the Health Care sector included China Pharma ( CPHI), down 2.1%, Oragenics ( OGEN), down 8.6%, American Shared Hospital Services ( AMS), down 5.9%, Prima Biomed ( PBMD), down 2.0% and Tianyin Pharmaceutical ( TPI), down 1.9%.

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

Agilent Technologies ( A) is one of the companies that pushed the Health Care sector lower today. Agilent Technologies was down $0.95 (1.8%) to $53.05 on average volume. Throughout the day, 2,140,054 shares of Agilent Technologies exchanged hands as compared to its average daily volume of 2,103,100 shares. The stock ranged in price between $52.99-$53.86 after having opened the day at $53.77 as compared to the previous trading day's close of $54.00.

Agilent Technologies, Inc. provides bio-analytical and electronic measurement solutions and services to the life sciences, chemical analysis, diagnostics and genomics, communications, and electronics industries worldwide. Agilent Technologies has a market cap of $17.5 billion and is part of the health services industry. Shares are down 5.6% year-to-date as of the close of trading on Tuesday. Currently there are 7 analysts who rate Agilent Technologies a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Agilent Technologies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on A go as follows:

  • A's revenue growth trails the industry average of 21.6%. Since the same quarter one year prior, revenues slightly increased by 6.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, A has a quick ratio of 2.08, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for AGILENT TECHNOLOGIES INC is rather high; currently it is at 57.87%. A has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, A's net profit margin of 8.32% compares favorably to the industry average.
  • AGILENT TECHNOLOGIES INC's earnings per share declined by 12.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, AGILENT TECHNOLOGIES INC reported lower earnings of $2.11 versus $3.26 in the prior year. This year, the market expects an improvement in earnings ($3.06 versus $2.11).

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

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At the close, Oragenics ( OGEN) was down $0.09 (8.6%) to $0.95 on average volume. Throughout the day, 22,059 shares of Oragenics exchanged hands as compared to its average daily volume of 16,000 shares. The stock ranged in price between $0.95-$1.04 after having opened the day at $1.04 as compared to the previous trading day's close of $1.04.

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 $42.3 million and is part of the health services industry. Shares are down 58.4% year-to-date as of the close of trading on Tuesday. 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 67.24%, 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 101.17%.
  • 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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China Pharma ( CPHI) was another company that pushed the Health Care sector lower today. China Pharma was down $0.00 (2.1%) to $0.23 on light volume. Throughout the day, 11,873 shares of China Pharma exchanged hands as compared to its average daily volume of 41,300 shares. The stock ranged in price between $0.22-$0.23 after having opened the day at $0.23 as compared to the previous trading day's close of $0.23.

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 $10.0 million and is part of the health services industry. Shares are down 31.9% year-to-date as of the close of trading on Tuesday.

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.

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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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 33.34%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% compared to the year-earlier 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.

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.

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