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 up 0.7% versus the S&P 500, which was down 0.5%. Laggards within the Health Care sector included Prima Biomed ( PBMD), down 3.0%, Reliv' International ( RELV), down 4.4%, ProPhase Labs ( PRPH), down 1.8%, Allied Healthcare Products ( AHPI), down 3.0% and Huttig Building Products ( HBP), down 3.9%.

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

Amedisys ( AMED) is one of the companies that pushed the Health Care sector lower today. Amedisys was down $0.94 (3.1%) to $29.02 on average volume. Throughout the day, 327,328 shares of Amedisys exchanged hands as compared to its average daily volume of 220,400 shares. The stock ranged in price between $27.96-$30.33 after having opened the day at $29.31 as compared to the previous trading day's close of $29.96.

Amedisys, Inc., together with its subsidiaries, provides home health and hospice care services. It operates through two segments, Home Health and Hospice. The Home Health segment offers a range of services in the homes of individuals who may be recovering from an illness, injury, or surgery. Amedisys has a market cap of $1.0 billion and is part of the health services industry. Shares are up 2.1% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Amedisys a buy, 1 analyst rates it a sell, and 7 rate it a hold.

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TheStreet Ratings rates Amedisys as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on AMED go as follows:

  • Powered by its strong earnings growth of 109.05% and other important driving factors, this stock has surged by 82.19% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AMED should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 109.3% when compared to the same quarter one year prior, rising from -$91.07 million to $8.44 million.
  • 43.33% is the gross profit margin for AMEDISYS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 2.81% is above that of the industry average.
  • AMED's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that AMED's debt-to-equity ratio is low, the quick ratio, which is currently 0.57, displays a potential problem in covering short-term cash needs.
  • AMEDISYS INC reported significant earnings per share improvement 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, AMEDISYS INC reported poor results of -$2.97 versus -$2.64 in the prior year. This year, the market expects an improvement in earnings ($0.72 versus -$2.97).

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

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At the close, Allied Healthcare Products ( AHPI) was down $0.05 (3.0%) to $1.60 on light volume. Throughout the day, 300 shares of Allied Healthcare Products exchanged hands as compared to its average daily volume of 12,400 shares. The stock ranged in price between $1.60-$1.60 after having opened the day at $1.60 as compared to the previous trading day's close of $1.65.

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 $13.5 million and is part of the health services industry. Shares are down 8.7% year-to-date as of the close of trading on Tuesday.

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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.

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

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Reliv' International ( RELV) was another company that pushed the Health Care sector lower today. Reliv' International was down $0.05 (4.4%) to $1.09 on light volume. Throughout the day, 1,159 shares of Reliv' International exchanged hands as compared to its average daily volume of 9,600 shares. The stock ranged in price between $1.09-$1.15 after having opened the day at $1.09 as compared to the previous trading day's close of $1.14.

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 $14.4 million and is part of the health services industry. Shares are down 2.6% year-to-date as of the close of trading on Tuesday.

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.

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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. Despite the strong results of the gross profit margin, RELV's net profit margin of 1.15% significantly 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 7.8%. 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.

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