Today's Strong And Under The Radar Stock Is Team Health Holdings (TMH)
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
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Team Health Holdings as such a stock due to the following factors:
- TMH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.7 million.
- TMH is making at least a new 3-day high.
- TMH has a PE ratio of 43.9.
- TMH is mentioned 1.35 times per day on StockTwits.
- TMH has not yet been mentioned on StockTwits today.
- TMH is currently in the upper 20% of its 1-year range.
- TMH is in the upper 35% of its 20-day range.
- TMH is in the upper 45% of its 5-day range.
- TMH is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on TMH:
Team Health Holdings, Inc. provides outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. TMH has a PE ratio of 43.9. Currently there are 10 analysts that rate Team Health Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Team Health Holdings has been 603,700 shares per day over the past 30 days. Team Health has a market cap of $4.2 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.81 and a short float of 3.5% with 5.44 days to cover. Shares are up 1.8% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Team Health Holdings as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- TMH's revenue growth has slightly outpaced the industry average of 18.4%. Since the same quarter one year prior, revenues rose by 27.2%. 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 its closing price of one year ago, TMH's share price has jumped by 30.42%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- Net operating cash flow has significantly increased by 131.47% to $91.95 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 105.25%.
- TEAM HEALTH HOLDINGS INC's earnings per share declined by 26.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TEAM HEALTH HOLDINGS INC increased its bottom line by earning $1.35 versus $1.23 in the prior year. This year, the market expects an improvement in earnings ($2.61 versus $1.35).
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Health Care Providers & Services industry and the overall market, TEAM HEALTH HOLDINGS INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- You can view the full Team Health Holdings Ratings Report.
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