Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Community Health Systems as such a stock due to the following factors:
- CYH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.3 million.
- CYH has traded 254,290 shares today.
- CYH is trading at 2.63 times the normal volume for the stock at this time of day.
- CYH is trading at a new low 4.04% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 CYH:
Community Health Systems, Inc., together with its subsidiaries, owns, leases, and operates general acute care hospitals in the United States. CYH has a PE ratio of 13. Currently there are 3 analysts that rate Community Health Systems a buy, 4 analysts rate it a sell, and 12 rate it a hold.
The average volume for Community Health Systems has been 4.0 million shares per day over the past 30 days. Community Health Systems has a market cap of $1.5 billion and is part of the health care sector and health services industry. The stock has a beta of 0.57 and a short float of 27.5% with 8.15 days to cover. Shares are down 50.6% year-to-date as of the close of trading on Thursday.
rates Community Health Systems as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally high debt management risk and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- 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 86.1% when compared to the same quarter one year ago, falling from $79.00 million to $11.00 million.
- 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, COMMUNITY HEALTH SYSTEMS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The gross profit margin for COMMUNITY HEALTH SYSTEMS INC is currently extremely low, coming in at 13.42%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.22% trails that of the industry average.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 73.05%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 86.07% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The debt-to-equity ratio is very high at 4.23 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, CYH's quick ratio is somewhat strong at 1.28, demonstrating the ability to handle short-term liquidity needs.
- You can view the full Community Health Systems Ratings Report.