Premier (PINC) Is Today's Dead Cat Bounce Stock
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Premier as such a stock due to the following factors:
- PINC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.1 million.
- PINC has traded 63,952 shares today.
- PINC is up 3.1% today.
- PINC was down 8.1% yesterday.
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More details on PINC:
Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. The company operates through two segments, Supply Chain Services and Performance Services. Currently there are 12 analysts that rate Premier a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Premier has been 307,500 shares per day over the past 30 days. Premier has a market cap of $1.5 billion and is part of the technology sector and computer software & services industry. Shares are down 11.1% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Premier as a
. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- PINC is off 6.16% from its price level of one year ago, reflecting the general market trend and ignoring their higher earnings per share 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.
- PREMIER INC reported significant earnings per share improvement 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PREMIER INC continued to lose money by earning -$24.75 versus -$83.32 in the prior year. This year, the market expects an improvement in earnings ($1.63 versus -$24.75).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Health Care Providers & Services industry average. The net income increased by 27.3% when compared to the same quarter one year prior, rising from $12.21 million to $15.54 million.
- The gross profit margin for PREMIER INC is rather high; currently it is at 66.86%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 5.20% is above that of the industry average.
- Net operating cash flow has increased to $132.10 million or 24.96% when compared to the same quarter last year. In addition, PREMIER INC has also modestly surpassed the industry average cash flow growth rate of 19.50%.
- You can view the full Premier Ratings Report.
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