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

Brookdale Senior Living

(

BKD

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Brookdale Senior Living as such a stock due to the following factors:

  • BKD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.5 million.
  • BKD traded 264,860 shares today in the pre-market hours as of 8:16 AM, representing 16.5% of its average daily volume.

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More details on BKD:

Brookdale Senior Living Inc. owns and operates senior living communities in the United States. It operates in six segments: Retirement Centers, Assisted Living, Continuing Care Retirement Communities (CCRCs) Rental, CCRCs Entry Fee, Brookdale Ancillary Services, and Management Services. Currently there are 5 analysts that rate Brookdale Senior Living a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Brookdale Senior Living has been 1.8 million shares per day over the past 30 days. Brookdale Senior Living has a market cap of $4.1 billion and is part of the health care sector and health services industry. The stock has a beta of 2.55 and a short float of 9.7% with 7.08 days to cover. Shares are up 21.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Brookdale Senior Living as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:

  • BKD's revenue growth trails the industry average of 16.7%. Since the same quarter one year prior, revenues slightly increased by 4.9%. 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 where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Providers & Services industry. The net income has significantly decreased by 164.6% when compared to the same quarter one year ago, falling from $3.56 million to -$2.30 million.
  • The debt-to-equity ratio is very high at 2.50 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.26, which clearly demonstrates the inability to cover short-term cash needs.

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