3 Health Services Stocks Pushing The Industry Higher

Two out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 22 points (0.1%) at 17,430 as of Friday, Aug. 14, 2015, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,691 issues advancing vs. 1,250 declining with 211 unchanged.

The Health Services industry as a whole closed the day down 0.1% versus the S&P 500, which was up 0.2%. Top gainers within the Health Services industry included SunLink Health Systems ( SSY), up 4.6%, Cesca Therapeutics ( KOOL), up 2.3%, Dynatronics ( DYNT), up 4.5%, Lombard Medical ( EVAR), up 5.8% and Spherix ( SPEX), up 2.6%.

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

Spherix ( SPEX) is one of the companies that pushed the Health Services industry higher today. Spherix was up $0.01 (2.6%) to $0.24 on light volume. Throughout the day, 97,405 shares of Spherix exchanged hands as compared to its average daily volume of 358,300 shares. The stock ranged in a price between $0.22-$0.24 after having opened the day at $0.23 as compared to the previous trading day's close of $0.23.

Spherix Incorporated operates as an intellectual property company that owns, develops, acquires, and monetizes patented and unpatented intellectual properties. The company owns approximately 330 patents and patent applications. Its patent portfolio includes the U.S. Spherix has a market cap of $6.8 million and is part of the health care sector. Shares are down 78.5% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Spherix a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Spherix 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 SPEX go as follows:

  • SPEX'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 84.83%, 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 revenue fell significantly faster than the industry average of 4.4%. Since the same quarter one year prior, revenues fell by 50.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Compared to other companies in the Professional Services industry and the overall market, SPHERIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • SPHERIX INC reported significant earnings per share improvement 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 year. During the past fiscal year, SPHERIX INC continued to lose money by earning -$2.73 versus -$8.67 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 48.7% when compared to the same quarter one year prior, rising from -$7.96 million to -$4.09 million.

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

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At the close, Lombard Medical ( EVAR) was up $0.22 (5.8%) to $3.98 on light volume. Throughout the day, 6,517 shares of Lombard Medical exchanged hands as compared to its average daily volume of 20,200 shares. The stock ranged in a price between $3.76-$3.99 after having opened the day at $3.93 as compared to the previous trading day's close of $3.76.

Lombard Medical, Inc., a medical technology company, develops, manufactures, and markets endovascular stent-grafts for the repair of aortic aneurysms in the United States, the United Kingdom, Germany, Japan, and internationally. Lombard Medical has a market cap of $61.1 million and is part of the health care sector. Shares are down 42.1% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts who rate Lombard Medical a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Lombard Medical 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 EVAR go as follows:

  • EVAR'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 38.94%, 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.
  • Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, LOMBARD MEDICAL TECH PLC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LOMBARD MEDICAL TECH PLC is rather high; currently it is at 60.37%. 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 -180.72% is in-line with the industry average.
  • EVAR's debt-to-equity ratio is very low at 0.27 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 7.46, which clearly demonstrates the ability to cover short-term cash needs.
  • LOMBARD MEDICAL TECH PLC has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings (-$2.07 versus -$2.14).

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

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Cesca Therapeutics ( KOOL) was another company that pushed the Health Services industry higher today. Cesca Therapeutics was up $0.02 (2.3%) to $0.68 on light volume. Throughout the day, 18,069 shares of Cesca Therapeutics exchanged hands as compared to its average daily volume of 69,800 shares. The stock ranged in a price between $0.62-$0.70 after having opened the day at $0.62 as compared to the previous trading day's close of $0.66.

Cesca Therapeutics Inc. focuses on the research, development, and commercialization of autologous cell-based therapeutics for use in regenerative medicine. Cesca Therapeutics has a market cap of $25.5 million and is part of the health care sector. Shares are down 35.3% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Cesca Therapeutics a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Cesca Therapeutics 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 KOOL go as follows:

  • CESCA THERAPEUTICS INC 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CESCA THERAPEUTICS INC reported poor results of -$0.39 versus -$0.18 in the prior year. For the next year, the market is expecting a contraction of 6.4% in earnings (-$0.42 versus -$0.39).
  • 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 158.8% when compared to the same quarter one year ago, falling from -$1.86 million to -$4.81 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, CESCA THERAPEUTICS 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 -$3.45 million or 95.46% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much 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 55.80%, 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. 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.

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

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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.

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