3 Health Care Stocks Pushing The Sector Higher

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 188 points (1.1%) at 17,006 as of Tuesday, Oct. 28, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,601 issues advancing vs. 503 declining with 115 unchanged.

The Health Care sector as a whole closed the day up 1.5% versus the S&P 500, which was up 1.2%. Top gainers within the Health Care sector included Aurinia Pharmaceuticals ( AUPH), up 2.9%, China Pharma ( CPHI), up 6.5%, SunLink Health Systems ( SSY), up 3.9%, Cyanotech ( CYAN), up 2.1% and American Caresource Holdings ( ANCI), up 12.9%.

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

American Caresource Holdings ( ANCI) is one of the companies that pushed the Health Care sector higher today. American Caresource Holdings was up $0.35 (12.9%) to $3.06 on average volume. Throughout the day, 10,246 shares of American Caresource Holdings exchanged hands as compared to its average daily volume of 10,900 shares. The stock ranged in a price between $2.73-$3.06 after having opened the day at $2.73 as compared to the previous trading day's close of $2.71.

American CareSource Holdings, Inc. provides access to a network of ancillary healthcare service providers in the United States. American Caresource Holdings has a market cap of $19.4 million and is part of the drugs industry. Shares are up 76.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate American Caresource Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on ANCI go as follows:

  • 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 Health Care Providers & Services industry and the overall market, AMERICAN CARESOURCE HLDGS's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$1.24 million or 24.57% 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.
  • AMERICAN CARESOURCE HLDGS has improved earnings per share by 19.2% 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, AMERICAN CARESOURCE HLDGS reported poor results of -$0.66 versus -$0.54 in the prior year.
  • ANCI, with its decline in revenue, underperformed when compared the industry average of 19.5%. Since the same quarter one year prior, revenues slightly dropped by 7.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • ANCI's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, ANCI has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.

You can view the full analysis from the report here: American Caresource Holdings Ratings Report

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At the close, China Pharma ( CPHI) was up $0.02 (6.5%) to $0.24 on light volume. Throughout the day, 22,713 shares of China Pharma exchanged hands as compared to its average daily volume of 41,100 shares. The stock ranged in a price between $0.23-$0.24 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 $9.3 million and is part of the drugs industry. Shares are down 37.9% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate China Pharma a buy, no analysts rate it a sell, and none rate it a hold.

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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 30.00%, 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.

Aurinia Pharmaceuticals ( AUPH) was another company that pushed the Health Care sector higher today. Aurinia Pharmaceuticals was up $0.10 (2.9%) to $3.50 on heavy volume. Throughout the day, 4,188 shares of Aurinia Pharmaceuticals exchanged hands as compared to its average daily volume of 1,500 shares. The stock ranged in a price between $3.16-$3.51 after having opened the day at $3.16 as compared to the previous trading day's close of $3.40.

Aurinia Pharmaceuticals has a market cap of $91.6 million and is part of the drugs industry. Shares are down 12.1% year-to-date as of the close of trading on Monday.

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.