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 0.5% versus the S&P 500, which was down 0.3%. Laggards within the Health Care sector included SunLink Health Systems ( SSY), down 1.8%, MGC Diagnostics ( MGCD), down 4.4%, Pingtan Marine Enterprise ( PME), down 11.3%, Eyegate Pharmaceuticals ( EYEG), down 6.3% and CAS Medical Systems ( CASM), down 5.9%.

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

ResMed ( RMD) is one of the companies that pushed the Health Care sector lower today. ResMed was down $2.55 (4.4%) to $55.40 on average volume. Throughout the day, 1,338,948 shares of ResMed exchanged hands as compared to its average daily volume of 999,100 shares. The stock ranged in price between $55.20-$57.99 after having opened the day at $57.65 as compared to the previous trading day's close of $57.95.

ResMed Inc. develops, manufactures, distributes, and markets medical equipment for the diagnosis, treatment, and management of respiratory disorders, with a focus on sleep-disordered breathing. ResMed has a market cap of $7.9 billion and is part of the health services industry. Shares are up 3.4% year-to-date as of the close of trading on Friday. Currently there are 4 analysts who rate ResMed a buy, 1 analyst rates it a sell, and 5 rate it a hold.

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TheStreet Ratings rates ResMed as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on RMD go as follows:

  • RMD's revenue growth trails the industry average of 27.9%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • RMD's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.04, which clearly demonstrates the ability to cover short-term cash needs.
  • RESMED INC reported flat earnings per share in the most recent quarter. 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, RESMED INC increased its bottom line by earning $2.47 versus $2.40 in the prior year. This year, the market expects an improvement in earnings ($2.68 versus $2.47).
  • The gross profit margin for RESMED INC is rather high; currently it is at 61.82%. Regardless of RMD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RMD's net profit margin of 19.30% significantly outperformed against the industry.

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

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At the close, CAS Medical Systems ( CASM) was down $0.06 (5.9%) to $1.02 on heavy volume. Throughout the day, 91,272 shares of CAS Medical Systems exchanged hands as compared to its average daily volume of 30,900 shares. The stock ranged in price between $1.02-$1.10 after having opened the day at $1.03 as compared to the previous trading day's close of $1.08.

CAS Medical Systems, Inc., a medical technology company, develops, manufactures, and markets medical devices for non-invasive patient monitoring in the United States and internationally. CAS Medical Systems has a market cap of $28.6 million and is part of the health services industry. Shares are down 35.1% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate CAS Medical Systems a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates CAS Medical Systems as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CASM go as follows:

  • CASM'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 43.39%, 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 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 Health Care Equipment & Supplies industry and the overall market, CAS MEDICAL SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CAS MEDICAL SYSTEMS INC is rather high; currently it is at 52.47%. 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 -26.14% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 58.00% to -$0.74 million when compared to the same quarter last year. In addition, CAS MEDICAL SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of -3.54%.
  • CAS MEDICAL SYSTEMS INC has improved earnings per share by 27.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CAS MEDICAL SYSTEMS INC continued to lose money by earning -$0.45 versus -$0.74 in the prior year. This year, the market expects an improvement in earnings (-$0.35 versus -$0.45).

You can view the full analysis from the report here: CAS Medical Systems Ratings Report

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MGC Diagnostics ( MGCD) was another company that pushed the Health Care sector lower today. MGC Diagnostics was down $0.23 (4.4%) to $5.02 on average volume. Throughout the day, 3,554 shares of MGC Diagnostics exchanged hands as compared to its average daily volume of 3,500 shares. The stock ranged in price between $5.01-$5.23 after having opened the day at $5.20 as compared to the previous trading day's close of $5.25.

MGC Diagnostics Corporation researches, develops, manufactures, and markets non-invasive cardiorespiratory diagnostic products under the MGC Diagnostics and MediSoft brand and trade names in the United States and internationally. MGC Diagnostics has a market cap of $22.6 million and is part of the health services industry. Shares are down 18.0% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates MGC Diagnostics 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.

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Highlights from TheStreet Ratings analysis on MGCD go as follows:

  • MGC DIAGNOSTICS CORP 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, MGC DIAGNOSTICS CORP swung to a loss, reporting -$0.27 versus $0.32 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 significantly decreased by 73.4% when compared to the same quarter one year ago, falling from $0.31 million to $0.08 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, MGC DIAGNOSTICS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $0.33 million or 38.44% 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 35.59%, 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. 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: MGC Diagnostics Ratings Report

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