3 Stocks Driving The Health Services Industry Higher

One out of the three major indices traded up today Two out of the three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading down 0.33 points (0.0%) at 17,403 as of Wednesday, Aug. 12, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,537 issues advancing vs. 1,563 declining with 108 unchanged.

The Health Services industry as a whole was unchanged today versus the S&P 500, which was up 0.1%. Top gainers within the Health Services industry included VirtualScopics ( VSCP), up 4.9%, Dynatronics ( DYNT), up 2.0%, Hooper Holmes ( HH), up 6.3%, Semler Scientific ( SMLR), up 5.2% and Cesca Therapeutics ( KOOL), up 4.1%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Semler Scientific ( SMLR) is one of the companies that pushed the Health Services industry higher today. Semler Scientific was up $0.16 (5.2%) to $3.31 on heavy volume. Throughout the day, 54,385 shares of Semler Scientific exchanged hands as compared to its average daily volume of 12,700 shares. The stock ranged in a price between $2.93-$3.40 after having opened the day at $2.93 as compared to the previous trading day's close of $3.15.

Semler Scientific, Inc., a medical risk-assessment company, develops, manufactures, and markets patented products that assist healthcare providers to monitor patients and evaluate chronic diseases in the United States. Semler Scientific has a market cap of $15.3 million and is part of the health care sector. Shares are up 60.6% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Semler Scientific a buy, no analysts rate it a sell, and none rate 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 Semler Scientific as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on SMLR go as follows:

  • In its most recent trading session, SMLR has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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 change in net income from the same quarter one year ago has exceeded that of the Health Care Equipment & Supplies industry average, but is less than that of the S&P 500. The net income has significantly decreased by 29.9% when compared to the same quarter one year ago, falling from -$1.03 million to -$1.34 million.
  • SEMLER SCIENTIFIC INC's earnings per share declined by 22.7% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, SEMLER SCIENTIFIC INC reported poor results of -$0.95 versus -$0.11 in the prior year. This year, the market expects an improvement in earnings (-$0.78 versus -$0.95).
  • The gross profit margin for SEMLER SCIENTIFIC INC is currently very high, coming in at 81.27%. Regardless of SMLR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SMLR's net profit margin of -102.91% significantly underperformed when compared to the industry average.
  • Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, SEMLER SCIENTIFIC 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: Semler Scientific 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.

At the close, Hooper Holmes ( HH) was up $0.01 (6.3%) to $0.17 on light volume. Throughout the day, 57,594 shares of Hooper Holmes exchanged hands as compared to its average daily volume of 234,200 shares. The stock ranged in a price between $0.16-$0.18 after having opened the day at $0.16 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 $11.9 million and is part of the health care sector. Shares are down 68.9% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Hooper Holmes a buy, no analysts rate it a sell, and none rate 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 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 79.17%, 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 6.5%. 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

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.

VirtualScopics ( VSCP) was another company that pushed the Health Services industry higher today. VirtualScopics was up $0.11 (4.9%) to $2.35 on heavy volume. Throughout the day, 7,299 shares of VirtualScopics exchanged hands as compared to its average daily volume of 4,600 shares. The stock ranged in a price between $2.05-$2.56 after having opened the day at $2.34 as compared to the previous trading day's close of $2.24.

VirtualScopics, Inc. provides imaging solutions to the pharmaceutical, biotechnology, and medical device industries. VirtualScopics has a market cap of $6.5 million and is part of the health care sector. Shares are down 29.4% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates VirtualScopics a buy, no analysts rate it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on VSCP 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 Life Sciences Tools & Services industry and the overall market, VIRTUALSCOPICS 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 -$1.55 million or 273.31% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for VIRTUALSCOPICS INC is currently lower than what is desirable, coming in at 34.61%. Regardless of VSCP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, VSCP's net profit margin of -19.65% significantly underperformed when compared to the industry average.
  • VSCP'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 41.18%, 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, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Life Sciences Tools & Services industry average, but is greater than that of the S&P 500. The net income increased by 14.4% when compared to the same quarter one year prior, going from -$0.65 million to -$0.55 million.

You can view the full analysis from the report here: VirtualScopics 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.

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.

More from Markets

Trade Tussle Sinks Stocks, Oil Slides, Micron, Daimler - 5 Things You Must Know

Trade Tussle Sinks Stocks, Oil Slides, Micron, Daimler - 5 Things You Must Know

Bank of England Holds Rates Steady, But Vote Shift Signals Hawkish Tone

Bank of England Holds Rates Steady, But Vote Shift Signals Hawkish Tone

Futures Fall on Further Trade Rhetoric from China and 4 Other Stories to Watch

Futures Fall on Further Trade Rhetoric from China and 4 Other Stories to Watch

5 Biggest U.S. Tech Stocks Test $4 Trillion Valuation Amid Bullish Nasdaq Run

5 Biggest U.S. Tech Stocks Test $4 Trillion Valuation Amid Bullish Nasdaq Run

Trade War Fear Creeps Back Into Markets on Thursday

Trade War Fear Creeps Back Into Markets on Thursday