Water-Logged And Getting Wetter Stock Of The Day: DaVita HealthCare Partners (DVA)
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 or Stephanie Link.Trade-Ideas LLC identified DaVita HealthCare Partners (DVA) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified DaVita HealthCare Partners as such a stock due to the following factors:
- DVA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.6 million.
- DVA has traded 1.8 million shares today.
- DVA traded in a range 268.9% of the normal price range with a price range of $2.09.
- DVA traded below its daily resistance level (quality: 334 days, meaning that the stock is crossing a resistance level set by the last 334 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.EXCLUSIVE OFFER: Get the inside scoop on opportunities in DVA with the Ticky from Trade-Ideas. See the FREE profile for DVA NOW at Trade-IdeasMore details on DVA: DaVita HealthCare Partners Inc. provides kidney dialysis services for patients suffering from chronic kidney failure, or end stage renal disease (ESRD) in the United States. DVA has a PE ratio of 20.4. Currently there are 7 analysts that rate DaVita HealthCare Partners a buy, no analysts rate it a sell, and 5 rate it a hold.The average volume for DaVita HealthCare Partners has been 1.4 million shares per day over the past 30 days. The stock has a beta of 1.13 and a short float of 3.4% with 4.50 days to cover. Shares are up 2.4% year to date as of the close of trading on Monday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates DaVita HealthCare Partners as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.Highlights from the ratings report include:
- DVA's very impressive revenue growth greatly exceeded the industry average of 10.4%. Since the same quarter one year prior, revenues leaped by 50.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- DAVITA HEALTHCARE PARTNERS 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 two years. We feel that this trend should continue. During the past fiscal year, DAVITA HEALTHCARE PARTNERS increased its bottom line by earning $2.73 versus $2.58 in the prior year. This year, the market expects an improvement in earnings ($3.77 versus $2.73).
- 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 166.8% when compared to the same quarter one year prior, rising from $95.34 million to $254.38 million.
- Net operating cash flow has significantly increased by 51.81% to $306.82 million when compared to the same quarter last year. Despite an increase in cash flow of 51.81%, DAVITA HEALTHCARE PARTNERS is still growing at a significantly lower rate than the industry average of 162.01%.
- You can view the full DaVita HealthCare Partners Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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