Trade-Ideas LLC identified

Genomic Health

(

GHDX

) as a weak 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 $6.0 million.
  • GHDX has traded 75,118 shares today.
  • GHDX is trading at 10.66 times the normal volume for the stock at this time of day.
  • GHDX is trading at a new low 4.05% 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 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 6 analysts that rate Genomic Health a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Genomic Health has been 196,300 shares per day over the past 30 days. Genomic Health has a market cap of $916.5 million and is part of the health care sector and health services industry. The stock has a beta of 0.67 and a short float of 8% with 6.53 days to cover. Shares are down 22.1% 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 disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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.
  • GHDX is off 5.32% 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.
  • The gross profit margin for GENOMIC HEALTH INC is currently very high, coming in at 80.47%. Regardless of GHDX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GHDX's net profit margin of -7.85% significantly underperformed when compared to the industry average.
  • GENOMIC HEALTH INC has improved earnings per share by 36.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENOMIC HEALTH INC reported poor results of -$1.03 versus -$0.79 in the prior year. This year, the market expects an improvement in earnings (-$0.47 versus -$1.03).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 33.1% when compared to the same quarter one year prior, rising from -$9.49 million to -$6.35 million.

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