Today's Dead Cat Bounce Stock Is ExamWorks Group (EXAM)

Trade-Ideas LLC identified ExamWorks Group (EXAM) as a "dead cat bounce" (down big yesterday but up big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

ExamWorks Group

(

EXAM

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified ExamWorks Group as such a stock due to the following factors:

  • EXAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.8 million.
  • EXAM has traded 51,662 shares today.
  • EXAM is up 4.1% today.
  • EXAM was down 21.4% yesterday.

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More details on EXAM:

ExamWorks Group, Inc., together with its subsidiaries, provides independent medical examinations (IMEs), peer and bill reviews, Medicare compliance, and other related services in the United States, Canada, the United Kingdom, and Australia. EXAM has a PE ratio of 962. Currently there are 3 analysts that rate ExamWorks Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for ExamWorks Group has been 366,100 shares per day over the past 30 days. ExamWorks Group has a market cap of $1.2 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.84 and a short float of 15% with 7.74 days to cover. Shares are down 45.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates ExamWorks Group as a

hold

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

Highlights from the ratings report include:

  • 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 109.5% when compared to the same quarter one year prior, rising from $3.42 million to $7.16 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.0%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • EXAMWORKS GROUP 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, EXAMWORKS GROUP INC turned its bottom line around by earning $0.25 versus -$0.28 in the prior year. For the next year, the market is expecting a contraction of 72.0% in earnings ($0.07 versus $0.25).
  • EXAM has underperformed the S&P 500 Index, declining 22.19% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • 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, EXAMWORKS GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.

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