3 Stocks Pushing The Health Services Industry 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 Services industry as a whole closed the day up 0.7% versus the S&P 500, which was down 0.2%. Laggards within the Health Services industry included Escalon Medical ( ESMC), down 3.4%, USMD Holdings ( USMD), down 1.9%, Allied Healthcare Products ( AHPI), down 4.3%, Cesca Therapeutics ( KOOL), down 6.5% and Dehaier Medical Systems ( DHRM), down 3.2%.

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

Dehaier Medical Systems ( DHRM) is one of the companies that pushed the Health Services industry lower today. Dehaier Medical Systems was down $0.06 (3.2%) to $1.90 on light volume. Throughout the day, 2,641 shares of Dehaier Medical Systems exchanged hands as compared to its average daily volume of 30,600 shares. The stock ranged in price between $1.90-$1.92 after having opened the day at $1.92 as compared to the previous trading day's close of $1.96.

Dehaier Medical Systems has a market cap of $11.2 million and is part of the health care sector. Shares are down 30.0% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

At the close, Cesca Therapeutics ( KOOL) was down $0.05 (6.5%) to $0.64 on average volume. Throughout the day, 60,910 shares of Cesca Therapeutics exchanged hands as compared to its average daily volume of 74,400 shares. The stock ranged in price between $0.64-$0.73 after having opened the day at $0.68 as compared to the previous trading day's close of $0.69.

Cesca Therapeutics Inc. focuses on the research, development, and commercialization of autologous cell-based therapeutics for use in regenerative medicine. Cesca Therapeutics has a market cap of $29.9 million and is part of the health care sector. Shares are down 32.4% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Cesca Therapeutics a buy, no analysts rate it a sell, and 1 rates it a hold.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreet Ratings rates Cesca Therapeutics 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 KOOL go as follows:

  • CESCA THERAPEUTICS 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CESCA THERAPEUTICS INC reported poor results of -$0.39 versus -$0.18 in the prior year. For the next year, the market is expecting a contraction of 6.4% in earnings (-$0.42 versus -$0.39).
  • 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 significantly decreased by 158.8% when compared to the same quarter one year ago, falling from -$1.86 million to -$4.81 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 Equipment & Supplies industry and the overall market, CESCA THERAPEUTICS 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 -$3.45 million or 95.46% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 47.15%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 71.42% compared to the year-earlier quarter. 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.

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

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Allied Healthcare Products ( AHPI) was another company that pushed the Health Services industry lower today. Allied Healthcare Products was down $0.07 (4.3%) to $1.55 on heavy volume. Throughout the day, 16,467 shares of Allied Healthcare Products exchanged hands as compared to its average daily volume of 9,700 shares. The stock ranged in price between $1.54-$1.66 after having opened the day at $1.60 as compared to the previous trading day's close of $1.62.

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 $12.6 million and is part of the health care sector. Shares are down 14.7% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates Allied Healthcare Products as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Highlights from TheStreet Ratings analysis on AHPI go as follows:

  • The gross profit margin for ALLIED HEALTHCARE PRODS INC is rather low; currently it is at 23.78%. Regardless of AHPI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AHPI's net profit margin of -5.91% significantly underperformed when compared to the industry average.
  • AHPI'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 27.24%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. 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 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. 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.
  • ALLIED HEALTHCARE PRODS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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, ALLIED HEALTHCARE PRODS INC reported poor results of -$0.34 versus -$0.15 in the prior year.
  • The revenue fell significantly faster than the industry average of 26.3%. Since the same quarter one year prior, revenues slightly dropped by 6.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Dow, S&P Rise for the First Time in 3 Sessions While Nasdaq Also Halts Decline

Dow, S&P Rise for the First Time in 3 Sessions While Nasdaq Also Halts Decline

Recession Could Hit a Vulnerable U.S. Economy in 2019 - What Investors Should Do

Recession Could Hit a Vulnerable U.S. Economy in 2019 - What Investors Should Do

Economist Perspective: Supply, Supply, Supply

Economist Perspective: Supply, Supply, Supply

Keep Calm and Trade On: A NYSE Trader Breaks Down Market Volatility

Keep Calm and Trade On: A NYSE Trader Breaks Down Market Volatility

Morning Jolt: The Retail Sector Kicks Holiday Shopping Off With a Bang

Morning Jolt: The Retail Sector Kicks Holiday Shopping Off With a Bang