3 Stocks Pushing The Drugs Industry Lower

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The Drugs industry as a whole closed the day down 0.8% versus the S&P 500, which was unchanged. Laggards within the Drugs industry included Prima Biomed ( PBMD), down 5.1%, Novogen ( NVGN), down 4.0%, Acura Pharmaceuticals ( ACUR), down 5.0%, Sophiris Bio ( SPHS), down 6.1% and Kamada ( KMDA), down 2.6%.

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

Kamada ( KMDA) is one of the companies that pushed the Drugs industry lower today. Kamada was down $0.09 (2.6%) to $3.41 on heavy volume. Throughout the day, 65,446 shares of Kamada exchanged hands as compared to its average daily volume of 25,800 shares. The stock ranged in price between $3.41-$3.49 after having opened the day at $3.41 as compared to the previous trading day's close of $3.50.

Kamada Ltd. develops, produces, and markets specialty plasma-derived protein therapeutics. It operates in two segments, Proprietary Products and Distribution. Kamada has a market cap of $136.7 million and is part of the health care sector. Shares are down 76.5% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Kamada a buy, no analysts rate it a sell, and 3 rate it a hold.

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TheStreet Ratings rates Kamada 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, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on KMDA go as follows:

  • KAMADA LTD 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. For the next year, the market is expecting a contraction of 4050.0% in earnings (-$0.40 versus $0.01).
  • 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 Biotechnology industry. The net income has significantly decreased by 1039.6% when compared to the same quarter one year ago, falling from $0.89 million to -$8.36 million.
  • The gross profit margin for KAMADA LTD is rather low; currently it is at 22.70%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -52.93% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 73.16%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 866.66% 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.
  • The revenue fell significantly faster than the industry average of 42.1%. Since the same quarter one year prior, revenues slightly dropped by 2.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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

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At the close, Sophiris Bio ( SPHS) was down $0.16 (6.1%) to $2.46 on average volume. Throughout the day, 30,636 shares of Sophiris Bio exchanged hands as compared to its average daily volume of 23,600 shares. The stock ranged in price between $2.44-$2.64 after having opened the day at $2.57 as compared to the previous trading day's close of $2.62.

Sophiris Bio has a market cap of $44.8 million and is part of the health care sector. Shares are down 29.2% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Sophiris Bio a buy, no analysts rate it a sell, and none rate it a hold.

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Acura Pharmaceuticals ( ACUR) was another company that pushed the Drugs industry lower today. Acura Pharmaceuticals was down $0.03 (5.0%) to $0.56 on light volume. Throughout the day, 44,328 shares of Acura Pharmaceuticals exchanged hands as compared to its average daily volume of 66,600 shares. The stock ranged in price between $0.55-$0.60 after having opened the day at $0.60 as compared to the previous trading day's close of $0.59.

Acura Pharmaceuticals, Inc., a specialty pharmaceutical company, researches, develops, and commercializes products to address medication abuse and misuse utilizing its proprietary Aversion and Impede technologies. Acura Pharmaceuticals has a market cap of $27.5 million and is part of the health care sector. Shares are down 66.3% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Acura Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

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

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Highlights from TheStreet Ratings analysis on ACUR go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Pharmaceuticals industry average. The net income has decreased by 14.5% when compared to the same quarter one year ago, dropping from -$3.08 million to -$3.52 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, ACURA PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • ACUR'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 65.07%, which is also worse than the performance of the S&P 500 Index. 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.
  • ACURA PHARMACEUTICALS INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ACURA PHARMACEUTICALS INC reported poor results of -$0.30 versus -$0.20 in the prior year. This year, the market expects an improvement in earnings (-$0.16 versus -$0.30).
  • ACUR's debt-to-equity ratio of 0.94 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 7.38 is very high and demonstrates very strong liquidity.

You can view the full analysis from the report here: Acura Pharmaceuticals 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.

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