Community Health Systems (CYH) Marked As A Dead Cat Bounce Stock
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Community Health Systems as such a stock due to the following factors:
- CYH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $94.0 million.
- CYH has traded 226,167 shares today.
- CYH is up 3.1% today.
- CYH was down 5.7% yesterday.
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More details on CYH:
Community Health Systems, Inc., together with its subsidiaries, provides general and specialized hospital healthcare services to patients in the United States. CYH has a PE ratio of 8. Currently there are 9 analysts that rate Community Health Systems a buy, no analysts rate it a sell, and 12 rate it a hold.
The average volume for Community Health Systems has been 2.6 million shares per day over the past 30 days. Community Health Systems has a market cap of $3.3 billion and is part of the health care sector and health services industry. The stock has a beta of 0.17 and a short float of 7.2% with 2.14 days to cover. Shares are down 50.8% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Community Health Systems as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.2%. Since the same quarter one year prior, revenues slightly increased by 1.4%. 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.
- Net operating cash flow has decreased to $111.00 million or 11.20% 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.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Health Care Providers & Services industry average, but is greater than that of the S&P 500. The net income has decreased by 16.1% when compared to the same quarter one year ago, dropping from $62.00 million to $52.00 million.
- You can view the full Community Health Systems Ratings Report.
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