3 Stocks Boosting The Drugs Industry Higher

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 Two 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 9.47 points (-0.1%) at 17,801 as of Monday, Nov. 24, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,732 issues advancing vs. 1,284 declining with 172 unchanged.

The Drugs industry as a whole closed the day up 1.4% versus the S&P 500, which was up 0.2%. Top gainers within the Drugs industry included Aoxing Pharmaceutical ( AXN), up 6.7%, Prima Biomed ( PBMD), up 3.0%, Reliv' International ( RELV), up 3.2%, Tianyin Pharmaceutical ( TPI), up 5.4% and Vermillion ( VRML), up 3.1%.

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

Vermillion ( VRML) is one of the companies that pushed the Drugs industry higher today. Vermillion was up $0.05 (3.1%) to $1.58 on heavy volume. Throughout the day, 44,805 shares of Vermillion exchanged hands as compared to its average daily volume of 29,800 shares. The stock ranged in a price between $1.54-$1.63 after having opened the day at $1.54 as compared to the previous trading day's close of $1.53.

Vermillion, Inc., together with its subsidiaries, is engaged in the discovery, development, and commercialization of diagnostic tests that help physicians diagnose, treat, and enhance outcomes for patients. It develops diagnostic tests in the fields of oncology and women's health. Vermillion has a market cap of $54.0 million and is part of the health care sector. Shares are down 36.4% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Vermillion 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 Vermillion as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on VRML 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 162.4% when compared to the same quarter one year ago, falling from -$2.12 million to -$5.56 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, VERMILLION 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 -$3.75 million or 117.58% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 35.63%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 36.36% 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.
  • VERMILLION INC's earnings per share declined by 36.4% 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, VERMILLION INC continued to lose money by earning -$0.45 versus -$0.47 in the prior year.

You can view the full analysis from the report here: Vermillion 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, Reliv' International ( RELV) was up $0.04 (3.2%) to $1.28 on light volume. Throughout the day, 14,840 shares of Reliv' International exchanged hands as compared to its average daily volume of 19,900 shares. The stock ranged in a price between $1.20-$1.30 after having opened the day at $1.29 as compared to the previous trading day's close of $1.24.

Reliv' International, Inc. develops, manufactures, and markets nutritional supplements that promote basic nutrition, weight loss, athletic performance, digestive health, women's health, anti-aging, and healthy energy. Reliv' International has a market cap of $15.5 million and is part of the health care sector. Shares are down 56.6% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Reliv' International 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 Reliv' International as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on RELV go as follows:

  • Although RELV's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.80 is somewhat weak and could be cause for future problems.
  • The gross profit margin for RELIV INTERNATIONAL INC is currently very high, coming in at 79.27%. Regardless of RELV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.15% trails the industry average.
  • RELV, with its decline in revenue, underperformed when compared the industry average of 5.6%. Since the same quarter one year prior, revenues fell by 13.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • RELIV INTERNATIONAL INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, RELIV INTERNATIONAL INC reported lower earnings of $0.06 versus $0.10 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 Personal Products industry. The net income has significantly decreased by 43.3% when compared to the same quarter one year ago, falling from $0.29 million to $0.17 million.

You can view the full analysis from the report here: Reliv' International 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.

Aoxing Pharmaceutical ( AXN) was another company that pushed the Drugs industry higher today. Aoxing Pharmaceutical was up $0.01 (6.7%) to $0.21 on light volume. Throughout the day, 45,420 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 71,200 shares. The stock ranged in a price between $0.21-$0.23 after having opened the day at $0.21 as compared to the previous trading day's close of $0.20.

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 $14.3 million and is part of the health care sector. Shares are down 13.5% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Aoxing Pharmaceutical a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Aoxing Pharmaceutical as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on AXN go as follows:

  • AXN has underperformed the S&P 500 Index, declining 21.43% 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.
  • 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 -19.65%.
  • 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.

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

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists

NYSE Suspends Trading for Some Shares of Nasdaq-Listed Amazon, Alphabet

NYSE Suspends Trading for Some Shares of Nasdaq-Listed Amazon, Alphabet

Stocks Waver Amid a Rise in Bond Yields, Strong Earnings

Stocks Waver Amid a Rise in Bond Yields, Strong Earnings

Video: Jim Cramer Reveals Why He's Cautious on Stocks

Video: Jim Cramer Reveals Why He's Cautious on Stocks

Jim Cramer on Earnings: All Stories Aren't Equal

Jim Cramer on Earnings: All Stories Aren't Equal