3 Stocks Pushing The Health Services Industry Lower

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The Health Services industry as a whole closed the day down 0.4% versus the S&P 500, which was unchanged. Laggards within the Health Services industry included VirtualScopics ( VSCP), down 3.7%, USMD Holdings ( USMD), down 7.8%, BSD Medical ( BSDM), down 10.1%, Vision-Sciences ( VSCI), down 3.8% and IMRIS ( IMRS), down 3.7%.

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

IMRIS ( IMRS) is one of the companies that pushed the Health Services industry lower today. IMRIS was down $0.01 (3.7%) to $0.27 on average volume. Throughout the day, 234,951 shares of IMRIS exchanged hands as compared to its average daily volume of 159,700 shares. The stock ranged in price between $0.25-$0.30 after having opened the day at $0.27 as compared to the previous trading day's close of $0.28.

IMRIS Inc. designs, manufactures, and sells image-guided therapy solutions that enable surgeons to obtain information and make decisions during the course of procedures. IMRIS has a market cap of $14.6 million and is part of the services sector. Shares are down 82.5% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates IMRIS a buy, no analysts rate it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on IMRS go as follows:

  • The debt-to-equity ratio of 1.12 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, IMRS maintains a poor quick ratio of 0.96, which illustrates the inability to avoid short-term cash problems.
  • 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, IMRIS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • IMRS'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 82.23%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • IMRIS INC has improved earnings per share by 12.5% 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, IMRIS INC reported poor results of -$0.83 versus -$0.60 in the prior year.
  • IMRS, with its very weak revenue results, has greatly underperformed against the industry average of 4.3%. Since the same quarter one year prior, revenues plummeted by 58.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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

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At the close, Vision-Sciences ( VSCI) was down $0.04 (3.8%) to $1.02 on light volume. Throughout the day, 4,950 shares of Vision-Sciences exchanged hands as compared to its average daily volume of 29,800 shares. The stock ranged in price between $1.01-$1.02 after having opened the day at $1.01 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 $49.1 million and is part of the services sector. Shares are up 3.0% year-to-date as of the close of trading on Wednesday.

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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.

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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VirtualScopics ( VSCP) was another company that pushed the Health Services industry lower today. VirtualScopics was down $0.15 (3.7%) to $3.95 on heavy volume. Throughout the day, 5,805 shares of VirtualScopics exchanged hands as compared to its average daily volume of 3,600 shares. The stock ranged in price between $3.95-$4.11 after having opened the day at $4.11 as compared to the previous trading day's close of $4.10.

VirtualScopics, Inc. provides imaging solutions for the pharmaceutical, biotechnology, and medical device industries. VirtualScopics has a market cap of $12.3 million and is part of the services sector. Shares are up 18.5% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates VirtualScopics a buy, no analysts rate it a sell, and none rate it a hold.

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

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Highlights from TheStreet Ratings analysis on VSCP go as follows:

  • 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 Life Sciences Tools & Services industry. The net income has significantly decreased by 646.3% when compared to the same quarter one year ago, falling from $0.13 million to -$0.73 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 Life Sciences Tools & Services industry and the overall market, VIRTUALSCOPICS 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 -$1.16 million or 716.90% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 35.46% is the gross profit margin for VIRTUALSCOPICS INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, VSCP's net profit margin of -27.64% significantly underperformed when compared to the industry average.
  • The revenue fell significantly faster than the industry average of 24.7%. Since the same quarter one year prior, revenues fell by 28.5%. 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: VirtualScopics 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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