3 Stocks Pushing The Health Services Industry Lower

The Health Services industry as a whole closed the day down 0.4% versus the S&P 500, which was down 0.2%. Laggards within the Health Services industry included USMD Holdings ( USMD), down 2.1%, VirtualScopics ( VSCP), down 1.7%, Hooper Holmes ( HH), down 4.4%, Check-Cap ( CHEK), down 4.3% and Stereotaxis ( STXS), down 5.6%.

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

Check-Cap ( CHEK) is one of the companies that pushed the Health Services industry lower today. Check-Cap was down $0.14 (4.3%) to $3.16 on light volume. Throughout the day, 2,351 shares of Check-Cap exchanged hands as compared to its average daily volume of 17,400 shares. The stock ranged in price between $3.11-$3.26 after having opened the day at $3.25 as compared to the previous trading day's close of $3.30.

Check-Cap has a market cap of $36.7 million and is part of the health care sector. Shares are unchanged year-to-date as of the close of trading on Monday.

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At the close, Hooper Holmes ( HH) was down $0.01 (4.4%) to $0.17 on light volume. Throughout the day, 104,858 shares of Hooper Holmes exchanged hands as compared to its average daily volume of 231,700 shares. The stock ranged in price between $0.17-$0.18 after having opened the day at $0.18 as compared to the previous trading day's close of $0.18.

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 $13.9 million and is part of the health care sector. Shares are down 65.5% year-to-date as of the close of trading on Monday.

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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 73.92%, 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

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VirtualScopics ( VSCP) was another company that pushed the Health Services industry lower today. VirtualScopics was down $0.04 (1.7%) to $2.26 on average volume. Throughout the day, 5,730 shares of VirtualScopics exchanged hands as compared to its average daily volume of 4,600 shares. The stock ranged in price between $2.02-$2.30 after having opened the day at $2.16 as compared to the previous trading day's close of $2.30.

VirtualScopics, Inc. provides imaging solutions to the pharmaceutical, biotechnology, and medical device industries. VirtualScopics has a market cap of $7.3 million and is part of the health care sector. Shares are down 27.5% year-to-date as of the close of trading on Monday. 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, poor profit margins and generally disappointing historical performance in the stock itself.

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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.
  • The gross profit margin for VIRTUALSCOPICS INC is currently lower than what is desirable, coming in at 33.41%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -18.11% is significantly below that of 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 33.69%, 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 25.3% when compared to the same quarter one year prior, rising from -$0.73 million to -$0.55 million.
  • VIRTUALSCOPICS INC has improved earnings per share by 23.1% 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, VIRTUALSCOPICS INC reported poor results of -$1.20 versus -$1.02 in the prior year.

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

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