Trade-Ideas LLC identified

Genomic Health

(

GHDX

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

  • GHDX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.5 million.
  • GHDX has traded 88,727 shares today.
  • GHDX is trading at 9.01 times the normal volume for the stock at this time of day.
  • GHDX is trading at a new high 18.00% 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 GHDX:

Genomic Health, Inc., a healthcare company, provides actionable genomic information to personalize cancer treatment decisions in the United States and internationally. Currently there are 4 analysts that rate Genomic Health a buy, 2 analysts rate it a sell, and 6 rate it a hold.

The average volume for Genomic Health has been 229,400 shares per day over the past 30 days. Genomic Health has a market cap of $701.9 million and is part of the health care sector and health services industry. The stock has a beta of 0.79 and a short float of 17.1% with 14.47 days to cover. Shares are down 32.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Genomic Health as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 100.0% when compared to the same quarter one year ago, falling from -$4.62 million to -$9.24 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Biotechnology industry and the overall market, GENOMIC HEALTH INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$3.40 million or 272.44% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 39.30%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 93.33% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • GENOMIC HEALTH 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GENOMIC HEALTH INC reported poor results of -$0.79 versus -$0.41 in the prior year. This year, the market expects an improvement in earnings (-$0.75 versus -$0.79).

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