Strong On High Relative Volume: Kindred Healthcare (KND)

Trade-Ideas LLC identified Kindred Healthcare (KND) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Kindred Healthcare

(

KND

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Kindred Healthcare as such a stock due to the following factors:

  • KND has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.4 million.
  • KND has traded 190,835 shares today.
  • KND is trading at 3.05 times the normal volume for the stock at this time of day.
  • KND is trading at a new high 3.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on KND:

Kindred Healthcare, Inc. provides healthcare services in the United States. It operates in four divisions: Hospital, Nursing Center, Rehabilitation, and Care Management. The stock currently has a dividend yield of 3.3%. Currently there are 3 analysts that rate Kindred Healthcare a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Kindred Healthcare has been 1.1 million shares per day over the past 30 days. Kindred Healthcare has a market cap of $1.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.73 and a short float of 5.1% with 2.27 days to cover. Shares are down 35% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Kindred Healthcare as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 8.3%. Since the same quarter one year prior, revenues rose by 45.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • KINDRED HEALTHCARE INC 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, KINDRED HEALTHCARE INC continued to lose money by earning -$0.24 versus -$0.87 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus -$0.24).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Providers & Services industry and the overall market, KINDRED HEALTHCARE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for KINDRED HEALTHCARE INC is currently lower than what is desirable, coming in at 26.82%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.22% trails that of the industry average.

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