Trade-Ideas LLC identified

Mednax

(

MD

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

  • MD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.6 million.
  • MD has traded 147,597 shares today.
  • MD is trading at 5.68 times the normal volume for the stock at this time of day.
  • MD is trading at a new low 5.04% 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 MD:

MEDNAX, Inc., together with its subsidiaries, provides neonatal, anesthesia, maternal-fetal, and other pediatric subspecialties physician services in the United States and Puerto Rico. MD has a PE ratio of 71. Currently there are 11 analysts that rate Mednax a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Mednax has been 826,700 shares per day over the past 30 days. Mednax has a market cap of $6.4 billion and is part of the health care sector and health services industry. The stock has a beta of 0.42 and a short float of 7.9% with 13.91 days to cover. Shares are down 5.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Mednax as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • MD's revenue growth has slightly outpaced the industry average of 10.8%. Since the same quarter one year prior, revenues rose by 14.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which illustrates the ability to avoid short-term cash problems.
  • MEDNAX INC has improved earnings per share by 11.2% 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, MEDNAX INC increased its bottom line by earning $3.58 versus $3.17 in the prior year. This year, the market expects an improvement in earnings ($4.30 versus $3.58).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Health Care Providers & Services industry average. The net income increased by 4.9% when compared to the same quarter one year prior, going from $88.40 million to $92.70 million.
  • The gross profit margin for MEDNAX INC is currently lower than what is desirable, coming in at 34.45%. Regardless of MD's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MD's net profit margin of 12.49% significantly outperformed against the industry.

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