3 Stocks Pushing The Health Services Industry Lower

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The Health Services industry as a whole closed the day down 1.0% versus the S&P 500, which was down 0.9%. Laggards within the Health Services industry included American Shared Hospital Services ( AMS), down 5.7%, Response Genetics ( RGDX), down 5.9%, Dynatronics ( DYNT), down 1.6%, Cesca Therapeutics ( KOOL), down 2.0% and Uroplasty ( UPI), down 2.0%.

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

Uroplasty ( UPI) is one of the companies that pushed the Health Services industry lower today. Uroplasty was down $0.04 (2.0%) to $1.94 on average volume. Throughout the day, 63,288 shares of Uroplasty exchanged hands as compared to its average daily volume of 56,600 shares. The stock ranged in price between $1.90-$2.00 after having opened the day at $1.93 as compared to the previous trading day's close of $1.98.

Uroplasty, Inc., a medical device company, develops, manufactures, and markets products for the treatment of voiding dysfunctions primarily in the United States. Uroplasty has a market cap of $46.5 million and is part of the health care sector. Shares are down 3.9% year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate Uroplasty a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Uroplasty 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 UPI 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 Equipment & Supplies industry and the overall market, UROPLASTY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • UPI has underperformed the S&P 500 Index, declining 12.55% 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.
  • UROPLASTY INC has improved earnings per share by 44.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UROPLASTY INC reported poor results of -$0.25 versus -$0.16 in the prior year. This year, the market expects an improvement in earnings (-$0.23 versus -$0.25).
  • The gross profit margin for UROPLASTY INC is currently very high, coming in at 88.39%. 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 -16.74% is in-line with the industry average.
  • Net operating cash flow has increased to -$0.97 million or 37.74% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.28%.

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

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At the close, Cesca Therapeutics ( KOOL) was down $0.02 (2.0%) to $1.00 on light volume. Throughout the day, 43,730 shares of Cesca Therapeutics exchanged hands as compared to its average daily volume of 93,800 shares. The stock ranged in price between $0.98-$1.03 after having opened the day at $1.02 as compared to the previous trading day's close of $1.02.

Cesca Therapeutics Inc. focuses on the research, development, and commercialization of autologous cell-based therapeutics for use in regenerative medicine. Cesca Therapeutics has a market cap of $41.5 million and is part of the health care sector. Shares are unchanged year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Cesca Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on KOOL 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 43.4% when compared to the same quarter one year ago, falling from -$2.30 million to -$3.30 million.
  • Net operating cash flow has significantly decreased to -$3.69 million or 166.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, CESCA THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 41.26% is the gross profit margin for CESCA THERAPEUTICS INC which we consider to be strong. Regardless of KOOL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KOOL's net profit margin of -90.17% significantly underperformed when compared to the industry average.
  • CESCA THERAPEUTICS INC has improved earnings per share by 42.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CESCA THERAPEUTICS INC reported poor results of -$0.39 versus -$0.18 in the prior year. This year, the market expects an improvement in earnings (-$0.33 versus -$0.39).

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

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Response Genetics ( RGDX) was another company that pushed the Health Services industry lower today. Response Genetics was down $0.02 (5.9%) to $0.32 on average volume. Throughout the day, 135,326 shares of Response Genetics exchanged hands as compared to its average daily volume of 172,300 shares. The stock ranged in price between $0.31-$0.34 after having opened the day at $0.33 as compared to the previous trading day's close of $0.34.

Response Genetics, Inc., a life science company, is engaged in the research, development, marketing, and sale of pharmacogenomic tests for use in the treatment of cancer primarily in the United States, Asia, and Europe. Response Genetics has a market cap of $12.8 million and is part of the health care sector. Shares are up 7.4% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Response Genetics 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, generally high debt management risk and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on RGDX 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 34.0% when compared to the same quarter one year ago, falling from -$2.72 million to -$3.64 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, RESPONSE GENETICS 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 -$4.30 million or 63.57% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The debt-to-equity ratio is very high at 4.80 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.74, which shows the ability to cover short-term cash needs.
  • Looking at the price performance of RGDX's shares over the past 12 months, there is not much good news to report: the stock is down 68.65%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.

You can view the full analysis from the report here: Response Genetics 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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