The Health Services industry as a whole closed the day down 1.6% versus the S&P 500, which was down 0.8%. Laggards within the Health Services industry included American Shared Hospital Services ( AMS), down 4.9%, MGC Diagnostics ( MGCD), down 1.9%, Huttig Building Products ( HBP), down 3.3%, Hooper Holmes ( HH), down 4.4% and ERBA Diagnostics ( ERB), down 5.5%.

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

Opko Health ( OPK) is one of the companies that pushed the Health Services industry lower today. Opko Health was down $2.21 (13.7%) to $13.90 on heavy volume. Throughout the day, 10,613,533 shares of Opko Health exchanged hands as compared to its average daily volume of 4,788,000 shares. The stock ranged in price between $13.64-$16.03 after having opened the day at $15.99 as compared to the previous trading day's close of $16.11.

OPKO Health, Inc., a biopharmaceutical and diagnostics company, engages in the discovery, development, and commercialization of novel and proprietary technologies in the United States and internationally. It operates through two segments, Pharmaceuticals and Diagnostics. Opko Health has a market cap of $7.4 billion and is part of the health care sector. Shares are up 61.3% year-to-date as of the close of trading on Wednesday. Currently there are 3 analysts who rate Opko Health a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Opko Health as a hold. 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 and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from TheStreet Ratings analysis on OPK go as follows:

  • The revenue growth came in higher than the industry average of 12.4%. Since the same quarter one year prior, revenues rose by 35.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • OPK's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, OPK has a quick ratio of 2.02, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for OPKO HEALTH INC is rather high; currently it is at 68.55%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -389.28% is in-line with the industry average.
  • 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 Biotechnology industry. The net income has significantly decreased by 162.9% when compared to the same quarter one year ago, falling from -$44.55 million to -$117.11 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 Biotechnology industry and the overall market, OPKO HEALTH INC's return on equity significantly trails that of both the industry average and the S&P 500.

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

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At the close, Hooper Holmes ( HH) was down $0.01 (4.4%) to $0.15 on light volume. Throughout the day, 68,802 shares of Hooper Holmes exchanged hands as compared to its average daily volume of 237,400 shares. The stock ranged in price between $0.15-$0.16 after having opened the day at $0.15 as compared to the previous trading day's close of $0.16.

Hooper Holmes, Inc., together with its subsidiaries, provides health risk assessment services to health and insurance industries in the United States. Hooper Holmes has a market cap of $11.8 million and is part of the health care sector. Shares are down 68.9% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Hooper Holmes as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on HH go as follows:

  • 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 Providers & Services industry and the overall market, HOOPER HOLMES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for HOOPER HOLMES INC is rather low; currently it is at 18.04%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -37.08% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$3.60 million or 107.55% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • HH'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 79.46%, 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.
  • HH, with its decline in revenue, underperformed when compared the industry average of 6.8%. Since the same quarter one year prior, revenues fell by 22.2%. 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: Hooper Holmes Ratings Report

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MGC Diagnostics ( MGCD) was another company that pushed the Health Services industry lower today. MGC Diagnostics 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 health care sector. Shares are down 18.6% year-to-date as of the close of trading on Wednesday.

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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