Trade-Ideas LLC identified

Genomic Health

(

GHDX

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Genomic Health as such a stock due to the following factors:

  • GHDX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.7 million.
  • GHDX has traded 73,881 shares today.
  • GHDX is trading at 8.10 times the normal volume for the stock at this time of day.
  • GHDX is trading at a new high 7.18% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 GHDX:

Genomic Health, Inc., a healthcare company, provides actionable genomic information to personalize cancer treatment decisions in the United States and internationally. Currently there are 6 analysts that rate Genomic Health a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for Genomic Health has been 246,000 shares per day over the past 30 days. Genomic Health has a market cap of $945.0 million and is part of the health care sector and health services industry. The stock has a beta of 0.79 and a short float of 14.9% with 12.12 days to cover. Shares are down 10.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Genomic Health as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • GENOMIC HEALTH 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, GENOMIC HEALTH INC reported poor results of -$0.79 versus -$0.41 in the prior year. For the next year, the market is expecting a contraction of 20.3% in earnings (-$0.95 versus -$0.79).
  • 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 Biotechnology industry. The net income has significantly decreased by 89.1% when compared to the same quarter one year ago, falling from -$6.26 million to -$11.84 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. Compared to other companies in the Biotechnology industry and the overall market, GENOMIC HEALTH INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The share price of GENOMIC HEALTH INC has not done very well: it is down 8.86% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for GENOMIC HEALTH INC is currently very high, coming in at 83.66%. Regardless of GHDX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GHDX's net profit margin of -16.10% significantly underperformed when compared to the industry average.

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