3 Health Services Stocks Moving The Industry Upward

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 324.80 points (-1.9%) at 16,666 as of Friday, Aug. 21, 2015, 12:55 PM ET. The NYSE advances/declines ratio sits at 525 issues advancing vs. 2,498 declining with 133 unchanged.

The Health Services industry as a whole closed the day down 1.2% versus the S&P 500, which was down 1.7%. Top gainers within the Health Services industry included MGC Diagnostics ( MGCD), up 5.5%, Check-Cap ( CHEK), up 5.7%, Wafergen Bio-systems ( WGBS), up 1.7%, Stereotaxis ( STXS), up 2.4% and Span-America Medical ( SPAN), up 1.7%.

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

Wafergen Bio-systems ( WGBS) is one of the companies that pushed the Health Services industry higher today. Wafergen Bio-systems was up $0.02 (1.7%) to $1.23 on light volume. Throughout the day, 22,972 shares of Wafergen Bio-systems exchanged hands as compared to its average daily volume of 45,800 shares. The stock ranged in a price between $1.20-$1.34 after having opened the day at $1.20 as compared to the previous trading day's close of $1.21.

WaferGen Bio-systems, Inc. develops, manufactures, and sells systems for gene expression quantification, genotyping, and stem cell research for the life sciences and pharmaceutical drug discovery industries in the United States, Canada, Europe, and the Asia Pacific. Wafergen Bio-systems has a market cap of $7.7 million and is part of the health care sector. Shares are down 59.7% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Wafergen Bio-systems 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 Wafergen Bio-systems as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on WGBS go as follows:

  • 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 Life Sciences Tools & Services industry. The net income has significantly decreased by 81.7% when compared to the same quarter one year ago, falling from -$2.10 million to -$3.82 million.
  • WGBS'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 87.64%, 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's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, WAFERGEN BIO-SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • WGBS, with its decline in revenue, slightly underperformed the industry average of 5.6%. Since the same quarter one year prior, revenues slightly dropped by 7.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for WAFERGEN BIO-SYSTEMS INC is rather high; currently it is at 58.01%. 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 -237.32% is in-line with the industry average.

You can view the full analysis from the report here: Wafergen Bio-systems 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, Check-Cap ( CHEK) was up $0.17 (5.7%) to $3.16 on light volume. Throughout the day, 1,529 shares of Check-Cap exchanged hands as compared to its average daily volume of 14,400 shares. The stock ranged in a price between $3.00-$3.16 after having opened the day at $3.00 as compared to the previous trading day's close of $2.99.

Check-Cap has a market cap of $34.1 million and is part of the health care sector. Shares are unchanged year-to-date as of the close of trading on Thursday.

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.

MGC Diagnostics ( MGCD) was another company that pushed the Health Services industry higher today. MGC Diagnostics was up $0.28 (5.5%) to $5.33 on heavy volume. Throughout the day, 4,733 shares of MGC Diagnostics exchanged hands as compared to its average daily volume of 2,800 shares. The stock ranged in a price between $5.01-$5.33 after having opened the day at $5.01 as compared to the previous trading day's close of $5.05.

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 $22.0 million and is part of the health care sector. Shares are down 21.1% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate MGC Diagnostics a buy, no analysts rate it a sell, and none rate it a hold.

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.

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 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 36.78%, 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

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.