3 Health Care Stocks Moving The Sector 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.

One out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 15.81 points (-0.1%) at 17,598 as of Tuesday, Nov. 11, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,371 issues advancing vs. 1,634 declining with 179 unchanged.

The Health Care sector as a whole closed the day up 0.1% versus the S&P 500, which was unchanged. Top gainers within the Health Care sector included Aurinia Pharmaceuticals ( AUPH), up 2.9%, Daxor ( DXR), up 3.7%, Aoxing Pharmaceutical ( AXN), up 2.3%, USMD Holdings ( USMD), up 3.5% and Prima Biomed ( PBMD), up 3.8%.

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

Aoxing Pharmaceutical ( AXN) is one of the companies that pushed the Health Care sector higher today. Aoxing Pharmaceutical was up $0.01 (2.3%) to $0.27 on light volume. Throughout the day, 10,980 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 64,900 shares. The stock ranged in a price between $0.27-$0.28 after having opened the day at $0.28 as compared to the previous trading day's close of $0.27.

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 $17.2 million and is part of the drugs industry. Shares are up 11.6% year-to-date as of the close of trading on Monday. 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. The area that we feel has been the company's primary weakness has been its poor profit margins.

Highlights from TheStreet Ratings analysis on AXN go as follows:

  • 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 -35.65%.
  • This stock has increased by 26.08% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in AXN do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • 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.

At the close, Daxor ( DXR) was up $0.24 (3.7%) to $6.79 on light volume. Throughout the day, 380 shares of Daxor exchanged hands as compared to its average daily volume of 2,500 shares. The stock ranged in a price between $6.79-$6.79 after having opened the day at $6.79 as compared to the previous trading day's close of $6.55.

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 $26.6 million and is part of the drugs industry. Shares are down 3.4% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Daxor 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 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 15.59% 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.
  • Despite currently having a low debt-to-equity ratio of 0.39, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that DXR's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.65 is high and demonstrates strong liquidity.

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.

Aurinia Pharmaceuticals ( AUPH) was another company that pushed the Health Care sector higher today. Aurinia Pharmaceuticals was up $0.10 (2.9%) to $3.60 on heavy volume. Throughout the day, 13,851 shares of Aurinia Pharmaceuticals exchanged hands as compared to its average daily volume of 3,500 shares. The stock ranged in a price between $3.38-$3.72 after having opened the day at $3.41 as compared to the previous trading day's close of $3.50.

Aurinia Pharmaceuticals has a market cap of $115.1 million and is part of the drugs industry. Shares are up 10.5% 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.

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers