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Trade-Ideas LLC identified

Amsurg

(

AMSG

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

  • AMSG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.4 million.
  • AMSG has traded 350,965 shares today.
  • AMSG is trading at 27.99 times the normal volume for the stock at this time of day.
  • AMSG is trading at a new high 3.00% 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 AMSG:

TheStreet Recommends

AmSurg Corp., through its subsidiaries, provides ambulatory and physician services in the United States. It operates in two segments, Ambulatory Services and Physician Services. AMSG has a PE ratio of 2. Currently there are 9 analysts that rate Amsurg a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Amsurg has been 505,000 shares per day over the past 30 days. Amsurg has a market cap of $4.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.57 and a short float of 9% with 9.69 days to cover. Shares are up 2.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Amsurg as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 8.6%. Since the same quarter one year prior, revenues rose by 27.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AMSURG CORP has improved earnings per share by 35.9% 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. During the past fiscal year, AMSURG CORP increased its bottom line by earning $3.13 versus $1.42 in the prior year. This year, the market expects an improvement in earnings ($4.34 versus $3.13).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 46.7% when compared to the same quarter one year prior, rising from $21.04 million to $30.86 million.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • 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. When compared to other companies in the Health Care Providers & Services industry and the overall market, AMSURG CORP's return on equity is below that of both the industry average and the S&P 500.

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