3 Stocks Pushing The Health Services Industry Lower

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.

The Health Services industry as a whole closed the day down 0.8% versus the S&P 500, which was down 0.3%. Laggards within the Health Services industry included Vision-Sciences ( VSCI), down 1.9%, American Caresource Holdings ( ANCI), down 3.4%, SunLink Health Systems ( SSY), down 2.0%, IMRIS ( IMRS), down 3.9% and Uroplasty ( UPI), down 4.4%.

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 (3.9%) to $0.22 on light volume. Throughout the day, 88,134 shares of IMRIS exchanged hands as compared to its average daily volume of 194,300 shares. The stock ranged in price between $0.22-$0.23 after having opened the day at $0.22 as compared to the previous trading day's close of $0.23.

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 $12.3 million and is part of the health care sector. Shares are down 85.2% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates IMRIS 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 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 79.70%, 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 6.3%. 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

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, American Caresource Holdings ( ANCI) was down $0.10 (3.4%) to $2.83 on light volume. Throughout the day, 878 shares of American Caresource Holdings exchanged hands as compared to its average daily volume of 11,500 shares. The stock ranged in price between $2.82-$3.05 after having opened the day at $3.05 as compared to the previous trading day's close of $2.93.

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 $19.5 million and is part of the health care sector. Shares are up 76.8% year-to-date as of the close of trading on Tuesday.

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 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. In conjunction, when comparing current results to the industry average, AMERICAN CARESOURCE HLDGS has marginally lower results.
  • 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 20.0%. 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.

Vision-Sciences ( VSCI) was another company that pushed the Health Services industry lower today. Vision-Sciences was down $0.02 (1.9%) to $1.03 on light volume. Throughout the day, 400 shares of Vision-Sciences exchanged hands as compared to its average daily volume of 28,500 shares. The stock ranged in price between $1.03-$1.03 after having opened the day at $1.03 as compared to the previous trading day's close of $1.05.

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 $50.2 million and is part of the health care sector. Shares are up 5.0% year-to-date as of the close of trading on Tuesday.

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.

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

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 6.3%. 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

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

More from Markets

Market Movers: Tech Earnings

Market Movers: Tech Earnings

American Express Beats on Earnings, Stock Rises Post-Market

American Express Beats on Earnings, Stock Rises Post-Market

Dow Dives Sharply on Rates Fears, Tech Shares Sink Nasdaq

Dow Dives Sharply on Rates Fears, Tech Shares Sink Nasdaq

Coca-Cola Has Two Execs Moving Up to C-Suites

Coca-Cola Has Two Execs Moving Up to C-Suites

Pfizer Confirms to Cut Workforce by 2%

Pfizer Confirms to Cut Workforce by 2%