The Health Care sector as a whole closed the day down 2.5% versus the S&P 500, which was down 0.8%. Laggards within the Health Care sector included American Shared Hospital Services ( AMS), down 4.9%, Reliv' International ( RELV), down 2.1%, MGC Diagnostics ( MGCD), down 1.9%, Huttig Building Products ( HBP), down 3.3% and Aradigm ( ARDM), down 3.1%.

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

Aradigm ( ARDM) is one of the companies that pushed the Health Care sector lower today. Aradigm was down $0.24 (3.1%) to $7.43 on light volume. Throughout the day, 1,048 shares of Aradigm exchanged hands as compared to its average daily volume of 4,900 shares. The stock ranged in price between $7.43-$7.68 after having opened the day at $7.65 as compared to the previous trading day's close of $7.67.

Aradigm Corporation, a specialty pharmaceutical company, focuses on the development and commercialization of drugs delivered by inhalation for the prevention and treatment of severe respiratory diseases. Aradigm has a market cap of $111.5 million and is part of the drugs industry. Shares are up 0.9% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Aradigm a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Aradigm as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on ARDM go as follows:

  • 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 115.0% when compared to the same quarter one year ago, falling from $7.76 million to -$1.16 million.
  • The share price of ARADIGM CORP has not done very well: it is down 12.80% 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.
  • ARADIGM 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ARADIGM CORP turned its bottom line around by earning $0.19 versus -$2.40 in the prior year. For the next year, the market is expecting a contraction of 447.4% in earnings (-$0.66 versus $0.19).
  • 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 Pharmaceuticals industry and the overall market, ARADIGM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 109.21% to $0.58 million when compared to the same quarter last year. In addition, ARADIGM CORP has also vastly surpassed the industry average cash flow growth rate of -70.80%.

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

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At the close, MGC Diagnostics ( MGCD) was down $0.10 (1.9%) to $5.11 on light volume. Throughout the day, 100 shares of MGC Diagnostics exchanged hands as compared to its average daily volume of 3,500 shares. The stock ranged in price between $5.11-$5.11 after having opened the day at $5.11 as compared to the previous trading day's close of $5.21.

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 $21.6 million and is part of the drugs industry. Shares are down 18.6% year-to-date as of the close of trading on Wednesday.

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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.

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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Reliv' International ( RELV) was another company that pushed the Health Care sector lower today. Reliv' International was down $0.03 (2.1%) to $1.24 on average volume. Throughout the day, 7,960 shares of Reliv' International exchanged hands as compared to its average daily volume of 8,900 shares. The stock ranged in price between $1.24-$1.27 after having opened the day at $1.27 as compared to the previous trading day's close of $1.27.

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 $16.4 million and is part of the drugs industry. Shares are up 8.3% year-to-date as of the close of trading on Wednesday.

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.

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Highlights from TheStreet Ratings analysis on RELV go as follows:

  • RELV's revenue growth has slightly outpaced the industry average of 2.5%. 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 10.30% 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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