3 Stocks Improving Performance Of The Drugs Industry

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 121 points (0.7%) at 17,751 as of Wednesday, July 29, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,248 issues advancing vs. 830 declining with 135 unchanged.

The Drugs industry as a whole closed the day down 1.2% versus the S&P 500, which was up 0.7%. Top gainers within the Drugs industry included Reliv' International ( RELV), up 1.6%, China Pharma ( CPHI), up 2.4%, VBI Vaccines ( VBIV), up 2.6%, Celsus Therapeutics ( CLTX), up 3.5% and Aradigm ( ARDM), up 2.8%.

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

VBI Vaccines ( VBIV) is one of the companies that pushed the Drugs industry higher today. VBI Vaccines was up $0.07 (2.6%) to $2.73 on light volume. Throughout the day, 1,800 shares of VBI Vaccines exchanged hands as compared to its average daily volume of 6,900 shares. The stock ranged in a price between $2.73-$2.73 after having opened the day at $2.73 as compared to the previous trading day's close of $2.66.

VBI Vaccines has a market cap of $49.0 million and is part of the health care sector. Shares are down 20.1% year-to-date as of the close of trading on Tuesday.

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At the close, China Pharma ( CPHI) was up $0.00 (2.4%) to $0.21 on light volume. Throughout the day, 50,828 shares of China Pharma exchanged hands as compared to its average daily volume of 84,200 shares. The stock ranged in a price between $0.20-$0.22 after having opened the day at $0.22 as compared to the previous trading day's close of $0.20.

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 $9.2 million and is part of the health care sector. Shares are down 31.7% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate China Pharma a buy, no analysts rate it a sell, and none rate it a hold.

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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 generally disappointing historical performance in the stock itself.

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 reported poor results of -$0.60 versus -$0.45 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 233.6% when compared to the same quarter one year ago, falling from -$2.39 million to -$7.97 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 -$0.00 million or 100.08% 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 share price of CHINA PHARMA HOLDINGS INC has not done very well: it is down 22.59% 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: China Pharma Ratings Report

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Reliv' International ( RELV) was another company that pushed the Drugs industry higher today. Reliv' International was up $0.02 (1.6%) to $1.25 on average volume. Throughout the day, 9,942 shares of Reliv' International exchanged hands as compared to its average daily volume of 8,600 shares. The stock ranged in a price between $1.21-$1.25 after having opened the day at $1.23 as compared to the previous trading day's close of $1.23.

Reliv' International, Inc. develops, manufactures, and markets nutritional supplements that promote basic nutrition, wellness needs, weight management, and sports nutrition. Reliv' International has a market cap of $16.0 million and is part of the health care sector. Shares are up 5.1% year-to-date as of the close of trading on Tuesday. 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 revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from TheStreet Ratings analysis on RELV go as follows:

  • RELV's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 2.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • RELV's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.90 is somewhat weak and could be cause for future problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Personal Products industry and the overall market, RELIV INTERNATIONAL INC's return on equity is below that of both the industry average and the S&P 500.
  • RELV has underperformed the S&P 500 Index, declining 16.45% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

You can view the full analysis from the report here: Reliv' International Ratings Report

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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.

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