Trade-Ideas LLC identified

IMS Health Holdings

(

IMS

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

  • IMS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.6 million.
  • IMS has traded 88,015 shares today.
  • IMS is trading at 3.84 times the normal volume for the stock at this time of day.
  • IMS is trading at a new low 3.02% 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 IMS:

IMS Health Holdings, Inc. provides information and technology services to healthcare industry worldwide. IMS has a PE ratio of 57. Currently there are 5 analysts that rate IMS Health Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for IMS Health Holdings has been 1.8 million shares per day over the past 30 days. IMS Health has a market cap of $9.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.13 and a short float of 2.7% with 6.57 days to cover. Shares are up 14.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates IMS Health Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 0.8%. Since the same quarter one year prior, revenues rose by 22.5%. 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.
  • IMS HEALTH HOLDINGS 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. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, IMS HEALTH HOLDINGS INC turned its bottom line around by earning $1.22 versus -$0.56 in the prior year. This year, the market expects an improvement in earnings ($1.60 versus $1.22).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Technology industry and the overall market on the basis of return on equity, IMS HEALTH HOLDINGS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for IMS HEALTH HOLDINGS INC is rather high; currently it is at 50.65%. Regardless of IMS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.55% trails the industry average.
  • The share price of IMS HEALTH HOLDINGS INC has not done very well: it is down 9.19% 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. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

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