Watch Out: Barbarians At The Gate For LifePoint Hospitals (LPNT)
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 LifePoint Hospitals (LPNT) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified LifePoint Hospitals as such a stock due to the following factors:
- LPNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.9 million.
- LPNT has traded 165,241 shares today.
- LPNT traded in a range 219.2% of the normal price range with a price range of $2.62.
- LPNT traded above its daily resistance level (quality: 532 days, meaning that the stock is crossing a resistance level set by the last 532 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.EXCLUSIVE OFFER: Get the inside scoop on opportunities in LPNT with the Ticky from Trade-Ideas. See the FREE profile for LPNT NOW at Trade-IdeasMore details on LPNT: LifePoint Hospitals, Inc., through its subsidiaries, operates general acute care hospitals in non-urban communities in the United States. LPNT has a PE ratio of 19.6. Currently there are 4 analysts that rate LifePoint Hospitals a buy, 2 analysts rate it a sell, and 10 rate it a hold.The average volume for LifePoint Hospitals has been 584,700 shares per day over the past 30 days. LifePoint has a market cap of $2.5 billion and is part of the health care sector and health services industry. Shares are up 1.3% year-to-date as of the close of trading on Thursday.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 LifePoint Hospitals as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.5%. Since the same quarter one year prior, revenues slightly increased by 6.6%. 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.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for LIFEPOINT HOSPITALS INC is rather low; currently it is at 20.69%. Regardless of LPNT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, LPNT's net profit margin of 3.73% compares favorably to the industry average.
- Net operating cash flow has decreased to $100.60 million or 16.58% when compared to the same quarter last year. Despite a decrease in cash flow LIFEPOINT HOSPITALS INC is still fairing well by exceeding its industry average cash flow growth rate of -26.67%.
- The change in net income from the same quarter one year ago has exceeded that of the Health Care Providers & Services industry average, but is less than that of the S&P 500. The net income has decreased by 1.9% when compared to the same quarter one year ago, dropping from $36.30 million to $35.60 million.
- You can view the full LifePoint Hospitals 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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