3 Stocks Raising The Health Services 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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 6 points (0.0%) at 17,679 as of Monday, Jan. 26, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,130 issues advancing vs. 953 declining with 135 unchanged.

The Health Services industry as a whole closed the day up 0.9% versus the S&P 500, which was up 0.3%. Top gainers within the Health Services industry included Escalon Medical ( ESMC), up 10.5%, Vision-Sciences ( VSCI), up 1.9%, American Caresource Holdings ( ANCI), up 6.4%, Semler Scientific ( SMLR), up 2.9% and MGC Diagnostics ( MGCD), up 5.4%.

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

Semler Scientific ( SMLR) is one of the companies that pushed the Health Services industry higher today. Semler Scientific was up $0.08 (2.9%) to $2.87 on light volume. Throughout the day, 3,320 shares of Semler Scientific exchanged hands as compared to its average daily volume of 11,600 shares. The stock ranged in a price between $2.85-$2.91 after having opened the day at $2.90 as compared to the previous trading day's close of $2.79.

Semler Scientific has a market cap of $13.4 million and is part of the health care sector. Shares are up 42.4% year-to-date as of the close of trading on Friday.

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At the close, American Caresource Holdings ( ANCI) was up $0.17 (6.4%) to $2.84 on heavy volume. Throughout the day, 19,259 shares of American Caresource Holdings exchanged hands as compared to its average daily volume of 9,600 shares. The stock ranged in a price between $2.49-$3.00 after having opened the day at $2.77 as compared to the previous trading day's close of $2.67.

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 $17.9 million and is part of the health care sector. Shares are down 8.6% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate American Caresource Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates American Caresource Holdings 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 and disappointing return on equity.

Highlights from TheStreet Ratings analysis on ANCI go as follows:

  • AMERICAN CARESOURCE HLDGS's earnings per share declined by 46.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, AMERICAN CARESOURCE HLDGS reported poor results of -$0.66 versus -$0.54 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 Health Care Providers & Services industry. The net income has significantly decreased by 69.6% when compared to the same quarter one year ago, falling from -$0.86 million to -$1.46 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 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 increased to -$0.87 million or 37.60% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.04%.
  • Compared to its closing price of one year ago, ANCI's share price has jumped by 40.95%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in ANCI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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 higher today. Vision-Sciences was up $0.01 (1.9%) to $0.52 on average volume. Throughout the day, 52,210 shares of Vision-Sciences exchanged hands as compared to its average daily volume of 42,200 shares. The stock ranged in a price between $0.48-$0.54 after having opened the day at $0.53 as compared to the previous trading day's close of $0.51.

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 $26.8 million and is part of the health care sector. Shares are down 28.2% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Vision-Sciences a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Vision-Sciences as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins and generally disappointing historical performance in the stock itself.

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.
  • VSCI'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 58.52%, 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.
  • 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.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 4.6%. 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.

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.

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