Surgical Care Affiliates (SCAI) Is Strong On High Volume Today
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Surgical Care Affiliates as such a stock due to the following factors:
- SCAI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.2 million.
- SCAI has traded 51,272 shares today.
- SCAI is trading at 2.47 times the normal volume for the stock at this time of day.
- SCAI 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 SCAI:
Surgical Care Affiliates, Inc., together with its subsidiaries, owns and operates a network of multi-specialty ambulatory surgery centers and surgical hospitals primarily in the United States. SCAI has a PE ratio of 27. Currently there are 3 analysts that rate Surgical Care Affiliates a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Surgical Care Affiliates has been 266,800 shares per day over the past 30 days. Surgical Care Affiliates has a market cap of $2.0 billion and is part of the health care sector and health services industry. Shares are up 24.4% year-to-date as of the close of trading on Monday.
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Analysis:
rates Surgical Care Affiliates as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.5%. Since the same quarter one year prior, revenues rose by 19.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 130.00% and other important driving factors, this stock has surged by 27.83% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although SCAI had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- SURGICAL CARE AFFILIATES 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 two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SURGICAL CARE AFFILIATES INC increased its bottom line by earning $2.82 versus $1.05 in the prior year. For the next year, the market is expecting a contraction of 26.9% in earnings ($2.06 versus $2.82).
- The debt-to-equity ratio is very high at 2.32 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, SCAI maintains a poor quick ratio of 0.92, which illustrates the inability to avoid short-term cash problems.
- The gross profit margin for SURGICAL CARE AFFILIATES INC is rather low; currently it is at 19.71%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.86% trails that of the industry average.
- You can view the full Surgical Care Affiliates Ratings Report.
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