3 Stocks Pushing The Health Care Sector Lower

The Health Care sector as a whole closed the day down 0.6% versus the S&P 500, which was down 0.3%. Laggards within the Health Care sector included Escalon Medical ( ESMC), down 1.5%, USMD Holdings ( USMD), down 4.2%, Allied Healthcare Products ( AHPI), down 3.7%, VBI Vaccines ( VBIV), down 3.3% and Perseon ( PRSN), down 1.5%.

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

Biocryst Pharmaceuticals ( BCRX) is one of the companies that pushed the Health Care sector lower today. Biocryst Pharmaceuticals was down $3.37 (23.6%) to $10.90 on heavy volume. Throughout the day, 4,584,715 shares of Biocryst Pharmaceuticals exchanged hands as compared to its average daily volume of 890,100 shares. The stock ranged in price between $10.26-$13.80 after having opened the day at $13.58 as compared to the previous trading day's close of $14.27.

BioCryst Pharmaceuticals, Inc., a biotechnology company, designs, optimizes, and develops small molecule drugs that block key enzymes involved in the pathogenesis of diseases. Biocryst Pharmaceuticals has a market cap of $1.1 billion and is part of the drugs industry. Shares are up 17.4% year-to-date as of the close of trading on Thursday. Currently there are 6 analysts who rate Biocryst Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Biocryst Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on BCRX go as follows:

  • BIOCRYST PHARMACEUTICALS INC's earnings per share declined by 23.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, BIOCRYST PHARMACEUTICALS INC reported poor results of -$0.68 versus -$0.55 in the prior year. For the next year, the market is expecting a contraction of 47.0% in earnings (-$1.00 versus -$0.68).
  • 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 49.6% when compared to the same quarter one year ago, falling from -$10.14 million to -$15.16 million.
  • Despite currently having a low debt-to-equity ratio of 0.47, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.22 is sturdy.
  • Compared to other companies in the Biotechnology industry and the overall market, BIOCRYST PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

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

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At the close, VBI Vaccines ( VBIV) was down $0.08 (3.3%) to $2.36 on light volume. Throughout the day, 308 shares of VBI Vaccines exchanged hands as compared to its average daily volume of 6,300 shares. The stock ranged in price between $2.36-$2.49 after having opened the day at $2.49 as compared to the previous trading day's close of $2.44.

VBI Vaccines has a market cap of $48.9 million and is part of the drugs industry. Shares are down 26.7% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates VBI Vaccines a buy, no analysts rate it a sell, and none rate it a hold.

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Allied Healthcare Products ( AHPI) was another company that pushed the Health Care sector lower today. Allied Healthcare Products was down $0.06 (3.7%) to $1.52 on light volume. Throughout the day, 1,031 shares of Allied Healthcare Products exchanged hands as compared to its average daily volume of 9,500 shares. The stock ranged in price between $1.52-$1.52 after having opened the day at $1.52 as compared to the previous trading day's close of $1.58.

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 $12.7 million and is part of the drugs industry. Shares are down 14.1% 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.

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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 has underperformed the S&P 500 Index, declining 21.36% from its price level of one year ago. 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.
  • 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 27.9%. 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

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