3 Drugs Stocks Moving The Industry Upward

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 128 points (0.8%) at 16,805 as of Friday, Oct. 24, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,914 issues advancing vs. 1,162 declining with 133 unchanged.

The Drugs industry as a whole closed the day up 0.8% versus the S&P 500, which was up 0.7%. Top gainers within the Drugs industry included China Pharma ( CPHI), up 4.5%, Aoxing Pharmaceutical ( AXN), up 12.2%, Reliv' International ( RELV), up 2.5%, Prima Biomed ( PBMD), up 3.8% and Tianyin Pharmaceutical ( TPI), up 3.9%.

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

Reliv' International ( RELV) is one of the companies that pushed the Drugs industry higher today. Reliv' International was up $0.03 (2.5%) to $1.24 on light volume. Throughout the day, 2,686 shares of Reliv' International exchanged hands as compared to its average daily volume of 15,000 shares. The stock ranged in a price between $1.21-$1.26 after having opened the day at $1.26 as compared to the previous trading day's close of $1.21.

Reliv' International, Inc. develops, manufactures, and markets nutritional supplements that promote basic nutrition, weight loss, athletic performance, digestive health, women's health, anti-aging, and healthy energy. Reliv' International has a market cap of $15.6 million and is part of the health care sector. Shares are down 56.9% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Reliv' International a buy, no analysts rate 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 Reliv' International as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on RELV go as follows:

  • Net operating cash flow has significantly increased by 120.15% to $0.20 million when compared to the same quarter last year. In addition, RELIV INTERNATIONAL INC has also vastly surpassed the industry average cash flow growth rate of 9.75%.
  • Although RELV's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.79 is somewhat weak and could be cause for future problems.
  • The gross profit margin for RELIV INTERNATIONAL INC is currently very high, coming in at 80.96%. Regardless of RELV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RELV's net profit margin of -1.99% significantly underperformed when compared to the industry average.
  • RELV'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 47.89%, which is also worse than the performance of the S&P 500 Index. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Personal Products industry and the overall market, RELIV INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Reliv' International 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, Aoxing Pharmaceutical ( AXN) was up $0.04 (12.2%) to $0.37 on heavy volume. Throughout the day, 313,860 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 44,700 shares. The stock ranged in a price between $0.30-$0.38 after having opened the day at $0.30 as compared to the previous trading day's close of $0.33.

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 $17.7 million and is part of the health care sector. Shares are up 32.2% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Aoxing Pharmaceutical a buy, no analysts rate 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 Aoxing Pharmaceutical 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 AXN go as follows:

  • AXN has underperformed the S&P 500 Index, declining 20.00% 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.
  • The gross profit margin for AOXING PHARMACEUTICAL CO INC is rather high; currently it is at 58.33%. 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 -71.80% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 68.38% to -$0.56 million when compared to the same quarter last year. In addition, AOXING PHARMACEUTICAL CO INC has also vastly surpassed the industry average cash flow growth rate of -50.80%.
  • AOXING PHARMACEUTICAL CO INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, AOXING PHARMACEUTICAL CO INC continued to lose money by earning -$0.16 versus -$0.34 in the prior year.
  • 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 78.4% when compared to the same quarter one year prior, rising from -$10.78 million to -$2.33 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.

China Pharma ( CPHI) was another company that pushed the Drugs industry higher today. China Pharma was up $0.01 (4.5%) to $0.21 on light volume. Throughout the day, 16,077 shares of China Pharma exchanged hands as compared to its average daily volume of 40,300 shares. The stock ranged in a price between $0.21-$0.22 after having opened the day at $0.21 as compared to the previous trading day's close of $0.20.

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 care sector. Shares are down 40.6% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate China Pharma a buy, no analysts rate it a sell, and none rate it a hold.

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.
  • 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.

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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