Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Health Management Associates

(

HMA

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Health Management Associates as such a stock due to the following factors:

  • HMA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.6 million.
  • HMA traded 2.0 million shares today in the pre-market hours as of 9:09 AM, representing 41.8% of its average daily volume.

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More details on HMA:

Health Management Associates, Inc., through its subsidiaries, engages in the operation of general acute care hospitals and other health care facilities in non-urban communities in the United States. The stock currently has a dividend yield of 3.3%. HMA has a PE ratio of 26.0. Currently there are 3 analysts that rate Health Management Associates a buy, 1 analyst rates it a sell, and 12 rate it a hold.

The average volume for Health Management Associates has been 3.9 million shares per day over the past 30 days. Health Management Associates has a market cap of $3.2 billion and is part of the health care sector and health services industry. The stock has a beta of 1.68 and a short float of 5.6% with 2.20 days to cover. Shares are up 33.9% year to date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Health Management Associates as a

hold

. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • HMA, with its decline in revenue, underperformed when compared the industry average of 9.9%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to its closing price of one year ago, HMA's share price has jumped by 46.85%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • The debt-to-equity ratio is very high at 3.39 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, HMA's quick ratio is somewhat strong at 1.34, demonstrating the ability to handle short-term liquidity needs.
  • HEALTH MANAGEMENT ASSOC 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, HEALTH MANAGEMENT ASSOC reported lower earnings of $0.67 versus $0.72 in the prior year. For the next year, the market is expecting a contraction of 17.9% in earnings ($0.55 versus $0.67).
  • 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 Health Care Providers & Services industry. The net income has significantly decreased by 80.0% when compared to the same quarter one year ago, falling from $36.95 million to $7.37 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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