3 Stocks Pushing The Health Care Sector 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.

The Health Care sector as a whole closed the day down 0.6% versus the S&P 500, which was down 0.5%. Laggards within the Health Care sector included Pro-Dex ( PDEX), down 1.9%, Allied Healthcare Products ( AHPI), down 1.8%, American Caresource Holdings ( ANCI), down 6.5%, ImmuCell ( ICCC), down 3.6% and Vision-Sciences ( VSCI), down 1.8%.

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

Vision-Sciences ( VSCI) is one of the companies that pushed the Health Care sector lower today. Vision-Sciences was down $0.01 (1.8%) to $0.48 on average volume. Throughout the day, 75,086 shares of Vision-Sciences exchanged hands as compared to its average daily volume of 71,500 shares. The stock ranged in price between $0.45-$0.50 after having opened the day at $0.50 as compared to the previous trading day's close of $0.49.

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 $24.1 million and is part of the health services industry. Shares are down 31.4% year-to-date as of the close of trading on Monday.

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

Highlights from TheStreet Ratings analysis on VSCI go as follows:

  • Net operating cash flow has decreased to -$1.85 million or 41.09% 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.
  • 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 68.39%, 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.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry average. The net income has remained constant at -$1.56 million when compared to the same quarter one year ago.
  • 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.
  • 41.69% is the gross profit margin for VISION-SCIENCES INC which we consider to be strong. 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 -31.74% is in-line with the industry average.

You can view the full analysis from the report here: Vision-Sciences Ratings Report

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At the close, American Caresource Holdings ( ANCI) was down $0.20 (6.5%) to $2.86 on light volume. Throughout the day, 1,560 shares of American Caresource Holdings exchanged hands as compared to its average daily volume of 10,100 shares. The stock ranged in price between $2.86-$2.97 after having opened the day at $2.97 as compared to the previous trading day's close of $3.06.

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 $20.7 million and is part of the health services industry. Shares are up 5.9% year-to-date as of the close of trading on Monday.

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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. Despite an increase in cash flow of 37.60%, AMERICAN CARESOURCE HLDGS is still growing at a significantly lower rate than the industry average of 105.25%.
  • Compared to its closing price of one year ago, ANCI's share price has jumped by 44.13%, 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

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Allied Healthcare Products ( AHPI) was another company that pushed the Health Care sector lower today. Allied Healthcare Products was down $0.03 (1.8%) to $1.65 on light volume. Throughout the day, 224 shares of Allied Healthcare Products exchanged hands as compared to its average daily volume of 11,900 shares. The stock ranged in price between $1.65-$1.69 after having opened the day at $1.69 as compared to the previous trading day's close of $1.68.

Allied Healthcare Products, Inc. manufactures, markets, and distributes respiratory care products, medical gas equipment, and emergency medical products in Canada, Mexico, Central and South America, Europe, the Middle East, and the Far East. Allied Healthcare Products has a market cap of $14.3 million and is part of the health services industry. Shares are down 3.3% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Allied Healthcare Products 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, poor profit margins and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on AHPI go as follows:

  • ALLIED HEALTHCARE PRODS INC's earnings per share declined by 28.6% 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, ALLIED HEALTHCARE PRODS INC reported poor results of -$0.34 versus -$0.15 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 Equipment & Supplies industry. The net income has decreased by 19.8% when compared to the same quarter one year ago, dropping from -$0.59 million to -$0.71 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ALLIED HEALTHCARE PRODS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ALLIED HEALTHCARE PRODS INC is rather low; currently it is at 21.58%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.00% is significantly below that of the industry average.
  • The share price of ALLIED HEALTHCARE PRODS INC has not done very well: it is down 21.63% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.

You can view the full analysis from the report here: Allied Healthcare Products 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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