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

DaVita HealthCare Partners

(

DVA

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified DaVita HealthCare Partners as such a stock due to the following factors:

  • DVA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $63.0 million.
  • DVA is down 2% today from today's close.

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More details on DVA:

DaVita HealthCare Partners Inc. provides kidney dialysis services for patients suffering from chronic kidney failure or end stage renal disease. It operates kidney dialysis centers and provides related lab services primarily in outpatient dialysis centers and in contracted hospitals. DVA has a PE ratio of 24.0. Currently there are 9 analysts that rate DaVita HealthCare Partners a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for DaVita HealthCare Partners has been 1.5 million shares per day over the past 30 days. DaVita HealthCare has a market cap of $14.9 billion and is part of the health care sector and health services industry. The stock has a beta of 1.24 and a short float of 4.1% with 4.00 days to cover. Shares are up 10% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates DaVita HealthCare Partners as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, growth in earnings per share, compelling growth in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 23.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • DAVITA HEALTHCARE PARTNERS has improved earnings per share by 31.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DAVITA HEALTHCARE PARTNERS increased its bottom line by earning $2.90 versus $2.73 in the prior year. This year, the market expects an improvement in earnings ($3.69 versus $2.90).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Providers & Services industry average. The net income increased by 36.2% when compared to the same quarter one year prior, rising from $155.84 million to $212.28 million.
  • Net operating cash flow has significantly increased by 76.88% to $354.19 million when compared to the same quarter last year. In addition, DAVITA HEALTHCARE PARTNERS has also vastly surpassed the industry average cash flow growth rate of -5.71%.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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