Health care stocks have been among the strongest performers to date and in this low-interest environment, investors seem hungry for dividends, but if you think buying just any health care stock with a strong yield is the answer, you'd be wrong.

The S&P 500 Health Care Index is up nearly 5% this year, one of the few sectors outperforming the broader S&P 500 Index, despite August's market volatility.

Health care stocks, particularly biotech and pharmaceutical companies, have come under fire in recent weeks. Investors are wondering how the 2016 presidential election will affect the sector, particularly as criticism heats up over outrageous drug pricing and over the Affordable Care Act.

The wave of mergers and acquisitions is also cause for some investor concern. Pfizer (PFE - Get Report) and Allergan (AGN - Get Report) are in discussions about a potential merger.

Despite noise in the sector, a number of health care stocks provide strong dividend yields -- something that is appealing to investors looking for income-generating stocks. But not all of those health care stocks with high yields are "buys," according to TheStreet Ratings. Check out the list of which stocks should be bought and which investors should sell, despite their high dividend yields.

Note: Three stocks on this list are considered microcap stocks, with market capitalization's below $100 million. Year-to-date returns are based on Oct. 28, 2015 closing prices.

TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a "buy" yielded a 16.56% return in 2014 beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a "buy" yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

 

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1. AdCare Health Systems Inc. (ADK)
Industry: Health Care/Health Care Facilities
Market Cap: $64 million
Year-to-date return: -19.5%
Annual Dividend Yield: 6.7%

TheStreet Rating: Sell, D+
TheStreet Said: TheStreet Ratings team rates ADCARE HEALTH SYSTEMS INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

We rate ADCARE HEALTH SYSTEMS INC (ADK) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes 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 Health Care Providers & Services industry. The net income has significantly decreased by 93.1% when compared to the same quarter one year ago, falling from -$2.64 million to -$5.09 million.
  • The debt-to-equity ratio is very high at 3.14 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, ADK maintains a poor quick ratio of 0.78, which illustrates the inability to avoid short-term cash problems.
  • Net operating cash flow has significantly decreased to -$8.07 million or 203.11% 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 ADCARE HEALTH SYSTEMS INC is rather low; currently it is at 19.43%. Regardless of ADK's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ADK's net profit margin of -21.83% significantly underperformed when compared to the industry average.
  • ADK'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 25.96%, 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.
  • You can view the full analysis from the report here: ADK

 

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2. AstraZeneca Plc (AZN - Get Report)
Industry: Health Care/Pharmaceuticals
Market Cap: $81 billion
Year-to-date return: -8.7%
Annual Dividend Yield: 6.05%

TheStreet Rating: Hold, C+
TheStreet Said: TheStreet Ratings team rates ASTRAZENECA PLC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate ASTRAZENECA PLC (AZN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The gross profit margin for ASTRAZENECA PLC is currently very high, coming in at 95.50%. 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 10.71% trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.2%. Since the same quarter one year prior, revenues slightly dropped by 5.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • AZN's debt-to-equity ratio of 0.60 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Pharmaceuticals industry and the overall market, ASTRAZENECA PLC's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $1,080.00 million or 48.05% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, ASTRAZENECA PLC has marginally lower results.
  • You can view the full analysis from the report here: AZN

 


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3. Baxter International Inc. (BAX - Get Report)
Industry: Health Care/Health Care Equipment
Market Cap: $20.3 billion
Return from July 1, 2015 (stock split): -4.1%
Annual Dividend Yield: 5.95%

TheStreet Rating: Buy, A-
TheStreet Said: TheStreet Ratings team rates BAXTER INTERNATIONAL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate BAXTER INTERNATIONAL INC (BAX) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to its closing price of one year ago, BAX's share price has jumped by 240.83%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BAX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 42.18% is the gross profit margin for BAXTER INTERNATIONAL INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.04% trails the industry average.
  • The revenue fell significantly faster than the industry average of 36.0%. Since the same quarter one year prior, revenues fell by 40.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • BAXTER INTERNATIONAL 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, BAXTER INTERNATIONAL INC reported lower earnings of $3.55 versus $3.65 in the prior year. For the next year, the market is expecting a contraction of 64.3% in earnings ($1.27 versus $3.55).
  • 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 99.8% when compared to the same quarter one year ago, falling from $468.00 million to $1.00 million.
  • You can view the full analysis from the report here: BAX

 

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4. Birner Dental Management Services Inc. (BDMS)
Industry: Health Care/Health Care Services
Market Cap: $24.7 million
Year-to-date return: -11.6%
Annual Dividend Yield: 6.83%

TheStreet Rating: Sell, D+
TheStreet Said: TheStreet Ratings team rates BIRNER DENTAL MGMT SVCS INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

We rate BIRNER DENTAL MGMT SVCS INC (BDMS) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The debt-to-equity ratio is very high at 3.16 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, BDMS has a quick ratio of 0.52, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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, BIRNER DENTAL MGMT SVCS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for BIRNER DENTAL MGMT SVCS INC is rather low; currently it is at 21.95%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.34% trails that of the industry average.
  • Net operating cash flow has decreased to $1.72 million or 32.68% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • BIRNER DENTAL MGMT SVCS INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, BIRNER DENTAL MGMT SVCS INC swung to a loss, reporting -$0.49 versus $0.05 in the prior year.
  • You can view the full analysis from the report here: BDMS

 

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5. Computer Programs & Systems Inc. (CPSI - Get Report)
Industry: Health Care/Health Care Technology
Market Cap: $506 million
Year-to-date return: -26.3%
Annual Dividend Yield: 5.86%

TheStreet Rating: Hold, C+
TheStreet Said: TheStreet Ratings team rates COMPUTER PROGRAMS & SYSTEMS as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate COMPUTER PROGRAMS & SYSTEMS (CPSI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and a generally disappointing performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • CPSI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.12, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 187.08% to $3.78 million when compared to the same quarter last year. In addition, COMPUTER PROGRAMS & SYSTEMS has also vastly surpassed the industry average cash flow growth rate of -23.69%.
  • 43.73% is the gross profit margin for COMPUTER PROGRAMS & SYSTEMS which we consider to be strong. Regardless of CPSI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CPSI's net profit margin of 12.53% compares favorably to the industry average.
  • COMPUTER PROGRAMS & SYSTEMS's earnings per share declined by 35.8% 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, COMPUTER PROGRAMS & SYSTEMS reported lower earnings of $2.93 versus $2.96 in the prior year. For the next year, the market is expecting a contraction of 28.3% in earnings ($2.10 versus $2.93).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Health Care Technology industry average. The net income has significantly decreased by 35.2% when compared to the same quarter one year ago, falling from $9.11 million to $5.90 million.
  • You can view the full analysis from the report here: CPSI

 

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6. GlaxoSmithKline Plc (GSK - Get Report)
Industry: Health Care/Pharmaceuticals
Market Cap: $104 billion
Year-to-date return: 1.8%
Annual Dividend Yield: 6.10%

TheStreet Rating: Buy, B-
TheStreet Said: TheStreet Ratings team rates GLAXOSMITHKLINE PLC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate GLAXOSMITHKLINE PLC (GSK) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • GSK's revenue growth has slightly outpaced the industry average of 6.2%. Since the same quarter one year prior, revenues slightly increased by 1.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 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 Pharmaceuticals industry and the overall market, GLAXOSMITHKLINE PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for GLAXOSMITHKLINE PLC is rather high; currently it is at 68.33%. Regardless of GSK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.23% trails the industry average.
  • GLAXOSMITHKLINE PLC's earnings per share declined by 20.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, GLAXOSMITHKLINE PLC reported lower earnings of $1.77 versus $3.68 in the prior year. This year, the market expects an improvement in earnings ($78.31 versus $1.77).
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income has decreased by 17.7% when compared to the same quarter one year ago, dropping from $1,147.39 million to $943.74 million.
  • You can view the full analysis from the report here: GSK

 

PDLI Chart PDLI data by YCharts

7. PDL BioPharma Inc. (PDLI - Get Report)
Industry: Health Care/Biotechnology
Market Cap: $764 million
Year-to-date return: -40%
Annual Dividend Yield: 13.21%

TheStreet Rating: Hold, C
TheStreet Said: TheStreet Ratings team rates PDL BIOPHARMA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate PDL BIOPHARMA INC (PDLI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.3%. Since the same quarter one year prior, revenues slightly increased by 1.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.67, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, PDLI has a quick ratio of 2.50, which demonstrates the ability of the company to cover short-term liquidity needs.
  • PDL BIOPHARMA INC's earnings per share declined by 9.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PDL BIOPHARMA INC increased its bottom line by earning $1.89 versus $1.73 in the prior year. This year, the market expects an improvement in earnings ($2.02 versus $1.89).
  • Looking at the price performance of PDLI's shares over the past 12 months, there is not much good news to report: the stock is down 45.04%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income has decreased by 15.0% when compared to the same quarter one year ago, dropping from $92.06 million to $78.26 million.
  • You can view the full analysis from the report here: PDLI

 

PMD Chart PMD data by YCharts

8. Psychemedics Corp. (PMD - Get Report)
Industry: Health Care/Health Care Services
Market Cap: $54 million
Year-to-date return: -35.5%
Annual Dividend Yield: 5.55%

TheStreet Rating: Hold, C
TheStreet Said: TheStreet Ratings team rates PSYCHEMEDICS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate PSYCHEMEDICS CORP (PMD) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The current debt-to-equity ratio, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, PMD has a quick ratio of 1.82, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 184.90% to $1.30 million when compared to the same quarter last year. In addition, PSYCHEMEDICS CORP has also vastly surpassed the industry average cash flow growth rate of -5.17%.
  • The gross profit margin for PSYCHEMEDICS CORP is rather high; currently it is at 51.89%. Regardless of PMD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PMD's net profit margin of 3.59% compares favorably to the industry average.
  • PSYCHEMEDICS 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, PSYCHEMEDICS CORP reported lower earnings of $0.60 versus $0.71 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 Providers & Services industry. The net income has significantly decreased by 70.6% when compared to the same quarter one year ago, falling from $0.86 million to $0.25 million.
  • You can view the full analysis from the report here: PMD

 

QSII Chart QSII data by YCharts

9. Quality Systems Inc. (QSII)
Industry: Health Care/Health Care Technology
Market Cap: $873 million
Year-to-date return: -7.5%
Annual Dividend Yield: 5.44%

TheStreet Rating: Hold, C
TheStreet Said: TheStreet Ratings team rates QUALITY SYSTEMS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate QUALITY SYSTEMS INC (QSII) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • QUALITY SYSTEMS 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, QUALITY SYSTEMS INC increased its bottom line by earning $0.45 versus $0.27 in the prior year. This year, the market expects an improvement in earnings ($0.62 versus $0.45).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Health Care Technology industry average. The net income increased by 75.0% when compared to the same quarter one year prior, rising from $4.75 million to $8.32 million.
  • 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 Health Care Technology industry and the overall market on the basis of return on equity, QUALITY SYSTEMS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for QUALITY SYSTEMS INC is rather high; currently it is at 54.14%. Regardless of QSII's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.63% trails the industry average.
  • QSII has underperformed the S&P 500 Index, declining 7.42% 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.
  • You can view the full analysis from the report here: QSII

 

THRX Chart THRX data by YCharts

10. Theravance Inc. (THRX)
Industry: Health Care/Pharmaceuticals
Market Cap: $946 million
Year-to-date return: -42.4%
Annual Dividend Yield: 11.97%

TheStreet Rating: Sell, D
TheStreet Said: TheStreet Ratings team rates THERAVANCE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate THERAVANCE INC (THRX) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. 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 the analysis by TheStreet Ratings Team goes as follows:

  • THRX'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 50.83%, 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.
  • THERAVANCE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, THERAVANCE INC reported poor results of -$0.66 versus -$0.30 in the prior year. This year, the market expects an improvement in earnings (-$0.15 versus -$0.66).
  • 48.19% is the gross profit margin for THERAVANCE INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -73.29% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 103.99% to $2.17 million when compared to the same quarter last year. In addition, THERAVANCE INC has also vastly surpassed the industry average cash flow growth rate of -45.83%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 87.7% when compared to the same quarter one year prior, rising from -$63.56 million to -$7.81 million.
  • You can view the full analysis from the report here: THRX