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 WellCare Health Plans as such a stock due to the following factors:
- WCG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.7 million.
- WCG is making at least a new 3-day high.
- WCG has a PE ratio of 33.4.
- WCG is mentioned 0.84 times per day on StockTwits.
- WCG has not yet been mentioned on StockTwits today.
- WCG is currently in the upper 20% of its 1-year range.
- WCG is in the upper 35% of its 20-day range.
- WCG is in the upper 45% of its 5-day range.
- WCG 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 WCG:
WellCare Health Plans, Inc. provides managed care services for government-sponsored health care programs in the United States. It operates in three segments: Medicaid, MA, and PDP. WCG has a PE ratio of 33.4. Currently there are 4 analysts that rate WellCare Health Plans a buy, 1 analyst rates it a sell, and 7 rate it a hold.
The average volume for WellCare Health Plans has been 576,900 shares per day over the past 30 days. WellCare Health Plans has a market cap of $3.3 billion and is part of the health care sector and health services industry. The stock has a beta of 1.49 and a short float of 4.3% with 4.26 days to cover. Shares are up 10.5% year-to-date as of the close of trading on Wednesday.
rates WellCare Health Plans as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 19.8%. Since the same quarter one year prior, revenues rose by 36.3%. 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.
- The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, WCG has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 53.05% to $426.00 million when compared to the same quarter last year. In addition, WELLCARE HEALTH PLANS INC has also vastly surpassed the industry average cash flow growth rate of -20.16%.
- 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. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- WELLCARE HEALTH PLANS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, WELLCARE HEALTH PLANS INC reported lower earnings of $3.98 versus $4.22 in the prior year. For the next year, the market is expecting a contraction of 48.5% in earnings ($2.05 versus $3.98).
- You can view the full WellCare Health Plans Ratings Report.