3 Stocks Driving The Health Services Industry 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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 17.89 points (-0.1%) at 17,537 as of Friday, Nov. 7, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,893 issues advancing vs. 1,131 declining with 143 unchanged.

The Health Services industry as a whole closed the day down 1.3% versus the S&P 500, which was down 0.1%. Top gainers within the Health Services industry included Escalon Medical ( ESMC), up 2.2%, Daxor ( DXR), up 1.5%, Signal Genetics ( SGNL), up 3.9%, American Caresource Holdings ( ANCI), up 3.9% and Neovasc ( NVCN), up 4.3%.

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

Neovasc ( NVCN) is one of the companies that pushed the Health Services industry higher today. Neovasc was up $0.24 (4.3%) to $5.78 on light volume. Throughout the day, 1,410 shares of Neovasc exchanged hands as compared to its average daily volume of 10,300 shares. The stock ranged in a price between $5.70-$5.78 after having opened the day at $5.70 as compared to the previous trading day's close of $5.54.

Neovasc has a market cap of $310.4 million and is part of the health care sector. Shares are up 46.8% year-to-date as of the close of trading on Thursday.

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At the close, American Caresource Holdings ( ANCI) was up $0.11 (3.9%) to $2.90 on average volume. Throughout the day, 14,181 shares of American Caresource Holdings exchanged hands as compared to its average daily volume of 11,400 shares. The stock ranged in a price between $2.80-$2.96 after having opened the day at $2.89 as compared to the previous trading day's close of $2.79.

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 $19.3 million and is part of the health care sector. Shares are up 75.6% year-to-date as of the close of trading on Thursday. 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. Despite a decrease in cash flow of 24.57%, AMERICAN CARESOURCE HLDGS is in line with the industry average cash flow growth rate of -26.60%.
  • 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

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

Daxor ( DXR) was another company that pushed the Health Services industry higher today. Daxor was up $0.10 (1.5%) to $6.60 on light volume. Throughout the day, 1,200 shares of Daxor exchanged hands as compared to its average daily volume of 2,600 shares. The stock ranged in a price between $6.59-$6.60 after having opened the day at $6.59 as compared to the previous trading day's close of $6.50.

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 $26.0 million and is part of the health care sector. Shares are down 4.8% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Daxor a buy, no analysts rate it a sell, and none rate it a hold.

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 13.78% 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

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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