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TheStreet Open House

Health Care Stocks: Performance Plus Value

What if we could find a top-performing small-cap domestic stock in the health care sector? What if the stock was still undervalued and had a great stock chart?

This is an extremely tall order, but let's give it a shot.

Data from Best Stocks Now App

Team Health Holdings (TMH) was founded in 1979. The company went public in 2009 at $12 per share and is currently trading at $39.79, as of Tuesday's close. Team Health provides outsourced healthcare staffing and administrative services to about 800 hospitals clients in 47 states.

Some estimates go as high as 30 million new customers entering into our health care system during the next several years of Obamacare implementation. Can our current health care infrastructure handle this many new customers?


Team Health has been growing its earnings by 17% over the last five years and it is expected to continue growing at approximately that rate for the next five years.

This is a good beginning. We have found a domestic small-cap stock that is growing, and it is in a leading sector in the market. But I still need performance, value and good stock chart before I will consider buying a stock.

Let's check out the stock's performance against the other 3,400 stocks I track:

Data from Best Stocks Now App

As you can see, the stock has handily outperformed the S&P 500 over the last one-month, three-month, one-year and three-year periods. It does not have a five- and 10-year record yet, so I am not able to give it a long-term performance grade.

The stock gets a momentum grade of "A-" however. This is a good start. We have met all of the criteria that we are looking for so far, but we still have two big ones to go.

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