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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 60.59 points (-0.3%) at 17,824 as of Friday, Feb. 6, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,145 issues advancing vs. 1,963 declining with 115 unchanged.

The Drugs industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.3%. Top gainers within the Drugs industry included Reliv' International ( RELV), up 1.6%, China Pharma ( CPHI), up 6.8%, Aoxing Pharmaceutical ( AXN), up 13.7%, ImmuCell ( ICCC), up 8.8% and Oragenics ( OGEN), up 4.6%.

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

Aoxing Pharmaceutical ( AXN) is one of the companies that pushed the Drugs industry higher today. Aoxing Pharmaceutical was up $0.06 (13.7%) to $0.46 on heavy volume. Throughout the day, 78,054 shares of Aoxing Pharmaceutical exchanged hands as compared to its average daily volume of 49,100 shares. The stock ranged in a price between $0.41-$0.48 after having opened the day at $0.42 as compared to the previous trading day's close of $0.40.

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 $25.8 million and is part of the health care sector. Shares are up 22.8% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Aoxing Pharmaceutical a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Aoxing Pharmaceutical as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and weak operating cash flow.

Highlights from TheStreet Ratings analysis on AXN go as follows:

  • The debt-to-equity ratio is very high at 14.68 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.19, which clearly demonstrates the inability to cover short-term cash needs.
  • Net operating cash flow has declined marginally to -$2.29 million or 2.78% when compared to the same quarter last year. Despite a decrease in cash flow AOXING PHARMACEUTICAL CO INC is still fairing well by exceeding its industry average cash flow growth rate of -42.07%.
  • 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 Pharmaceuticals industry and the overall market, AOXING PHARMACEUTICAL CO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for AOXING PHARMACEUTICAL CO INC is currently very high, coming in at 72.68%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.17% is in-line with the industry average.
  • This stock has increased by 54.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in AXN 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: 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.

At the close, China Pharma ( CPHI) was up $0.02 (6.8%) to $0.30 on light volume. Throughout the day, 18,654 shares of China Pharma exchanged hands as compared to its average daily volume of 67,900 shares. The stock ranged in a price between $0.26-$0.30 after having opened the day at $0.28 as compared to the previous trading day's close of $0.28.

China Pharma Holdings, Inc. develops, manufactures, and markets generic and branded pharmaceutical, and biochemical products to hospitals and private retailers in the People's Republic of China. China Pharma has a market cap of $11.9 million and is part of the health care sector. Shares are down 9.4% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate China Pharma 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 China Pharma 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, disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on CPHI go as follows:

  • CHINA PHARMA HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, CHINA PHARMA HOLDINGS INC swung to a loss, reporting -$0.45 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 Pharmaceuticals industry. The net income has significantly decreased by 174.9% when compared to the same quarter one year ago, falling from -$2.30 million to -$6.33 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 Pharmaceuticals industry and the overall market, CHINA PHARMA HOLDINGS 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 $0.18 million or 71.56% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The gross profit margin for CHINA PHARMA HOLDINGS INC is currently lower than what is desirable, coming in at 34.60%. Regardless of CPHI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CPHI's net profit margin of -113.66% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: China Pharma 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.

Reliv' International ( RELV) was another company that pushed the Drugs industry higher today. Reliv' International was up $0.02 (1.6%) to $1.23 on light volume. Throughout the day, 7,267 shares of Reliv' International exchanged hands as compared to its average daily volume of 14,300 shares. The stock ranged in a price between $1.19-$1.23 after having opened the day at $1.20 as compared to the previous trading day's close of $1.21.

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 $14.8 million and is part of the health care sector. Shares are up 0.1% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Reliv' International a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Reliv' International as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. 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:

  • The gross profit margin for RELIV INTERNATIONAL INC is currently very high, coming in at 80.94%. 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 1.15% trails the industry average.
  • Although RELV's debt-to-equity ratio of 0.27 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 0.87 is somewhat weak and could be cause for future problems.
  • RELV, with its decline in revenue, underperformed when compared the industry average of 5.7%. 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.

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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