Team Health Holdings Inc Stock Upgraded (TMH)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK (TheStreet) -- Team Health Holdings (NYSE:TMH) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

• EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:

• TMH's revenue growth has slightly outpaced the industry average of 14.2%. Since the same quarter one year prior, revenues rose by 21.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
• TEAM HEALTH HOLDINGS INC has improved earnings per share by 30.4% 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 two years. We feel that this trend should continue. During the past fiscal year, TEAM HEALTH HOLDINGS INC increased its bottom line by earning $0.99 versus $0.10 in the prior year. This year, the market expects an improvement in earnings ($1.56 versus $0.99).
• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 34.1% when compared to the same quarter one year prior, rising from $15.25 million to $20.45 million.
• The gross profit margin for TEAM HEALTH HOLDINGS INC is rather high; currently it is at 55.70%. 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 2.07% trails the industry average.
• Powered by its strong earnings growth of 30.43% and other important driving factors, this stock has surged by 38.18% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

.

Team Health Holdings, Inc. provides outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. The company has a P/E ratio of 34.7, above the S&P 500 P/E ratio of 17.7. Team Health has a market cap of $1.96 billion and is part of the services sector and diversified services industry. Shares are up 32.1% year to date as of the close of trading on Tuesday.

You can view the full Team Health Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.

For more information on Team Health Holdings Inc click any of the following:

• Team Health Holdings Inc Stock Price

• Team Health Holdings Inc Analyst Ratings

• Team Health Holdings Inc Key Stats & Profile

• Team Health Holdings Inc Earnings

• Team Health Holdings Inc Ratio Comparison

• Team Health Holdings Inc Growth Rates

• Team Health Holdings Inc Balance Sheet

• Team Health Holdings Inc Cash Flow

• Team Health Holdings Inc Income Statement