3 Stocks Pushing The Health Services Industry Lower

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The Health Services industry as a whole closed the day up 0.2% versus the S&P 500, which was unchanged. Laggards within the Health Services industry included Escalon Medical ( ESMC), down 2.2%, Huttig Building Products ( HBP), down 4.2%, Vision-Sciences ( VSCI), down 2.8%, Electromed ( ELMD), down 1.9% and Hooper Holmes ( HH), down 1.7%.

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

Hooper Holmes ( HH) is one of the companies that pushed the Health Services industry lower today. Hooper Holmes was down $0.01 (1.7%) to $0.58 on light volume. Throughout the day, 28,418 shares of Hooper Holmes exchanged hands as compared to its average daily volume of 114,500 shares. The stock ranged in price between $0.56-$0.60 after having opened the day at $0.60 as compared to the previous trading day's close of $0.59.

Hooper Holmes, Inc., together with its subsidiaries, provides health risk assessment services to the life insurance and health industries in the United States. The company operates through three segments: Health and Wellness, Heritage Labs, and Hooper Holmes Services. Hooper Holmes has a market cap of $41.1 million and is part of the health care sector. Shares are up 9.4% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Hooper Holmes as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on HH go as follows:

  • 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 Providers & Services industry and the overall market, HOOPER HOLMES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • HH has underperformed the S&P 500 Index, declining 9.84% 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.
  • HOOPER HOLMES INC has improved earnings per share by 40.0% 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, HOOPER HOLMES INC reported poor results of -$0.17 versus -$0.11 in the prior year.
  • 36.56% is the gross profit margin for HOOPER HOLMES INC which we consider to be strong. Regardless of HH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HH's net profit margin of -42.11% significantly underperformed when compared to the industry average.
  • Net operating cash flow has significantly increased by 138.55% to $0.56 million when compared to the same quarter last year. In addition, HOOPER HOLMES INC has also vastly surpassed the industry average cash flow growth rate of -23.09%.

You can view the full analysis from the report here: Hooper Holmes Ratings Report

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At the close, Electromed ( ELMD) was down $0.03 (1.9%) to $1.54 on heavy volume. Throughout the day, 52,081 shares of Electromed exchanged hands as compared to its average daily volume of 26,400 shares. The stock ranged in price between $1.50-$1.60 after having opened the day at $1.56 as compared to the previous trading day's close of $1.57.

Electromed, Inc. designs, develops, manufactures, markets, and sells airway clearance products in the United States and internationally. Electromed has a market cap of $12.9 million and is part of the health care sector. Shares are down 53.2% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Electromed a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Electromed as a hold. 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 and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from TheStreet Ratings analysis on ELMD go as follows:

  • The revenue growth came in higher than the industry average of 4.3%. Since the same quarter one year prior, revenues rose by 14.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ELMD's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.39, which clearly demonstrates the ability to cover short-term cash needs.
  • ELECTROMED INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, ELECTROMED INC continued to lose money by earning -$0.15 versus -$0.16 in the prior year. This year, the market expects an improvement in earnings ($0.03 versus -$0.15).
  • The gross profit margin for ELECTROMED INC is currently very high, coming in at 74.26%. 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 6.28% trails the industry average.
  • 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 Equipment & Supplies industry and the overall market, ELECTROMED 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: Electromed Ratings Report

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Vision-Sciences ( VSCI) was another company that pushed the Health Services industry lower today. Vision-Sciences was down $0.03 (2.8%) to $1.03 on light volume. Throughout the day, 1,015 shares of Vision-Sciences exchanged hands as compared to its average daily volume of 36,100 shares. The stock ranged in price between $1.02-$1.04 after having opened the day at $1.04 as compared to the previous trading day's close of $1.06.

Vision-Sciences, Inc., through its subsidiaries, designs, develops, manufactures, and markets endoscopy products. It operates through Medical and Industrial segments. Vision-Sciences has a market cap of $51.4 million and is part of the health care sector. Shares are up 6.0% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Vision-Sciences as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and poor profit margins.

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Highlights from TheStreet Ratings analysis on VSCI go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Health Care Equipment & Supplies industry. The net income has decreased by 16.6% when compared to the same quarter one year ago, dropping from -$1.32 million to -$1.54 million.
  • The gross profit margin for VISION-SCIENCES INC is currently lower than what is desirable, coming in at 34.31%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -37.54% is significantly below that of the industry average.
  • VISION-SCIENCES INC reported flat earnings per share in the most recent quarter. 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, VISION-SCIENCES INC continued to lose money by earning -$0.16 versus -$0.22 in the prior year.
  • Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 4.3%. Since the same quarter one year prior, revenues slightly increased by 3.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.

You can view the full analysis from the report here: Vision-Sciences Ratings Report

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