Trade-Ideas LLC identified

Envision Healthcare Holdings

(

EVHC

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

  • EVHC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.0 million.
  • EVHC has traded 389,201 shares today.
  • EVHC is trading at 5.08 times the normal volume for the stock at this time of day.
  • EVHC is trading at a new high 4.00% 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 EVHC:

Envision Healthcare Holdings, Inc. provides physician-led, outsourced medical services to consumers, hospitals, healthcare systems, health plans, and government entities in the United States. EVHC has a PE ratio of 29. Currently there are 13 analysts that rate Envision Healthcare Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Envision Healthcare Holdings has been 2.6 million shares per day over the past 30 days. Envision Healthcare has a market cap of $4.4 billion and is part of the health care sector and health services industry. Shares are down 32.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Envision Healthcare Holdings as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, poor profit margins, weak operating cash flow and generally high debt management risk.

Highlights from the ratings report include:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.04%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 67.85% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, EVHC is still more expensive than most of the other companies in its industry.
  • 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 67.3% when compared to the same quarter one year ago, falling from $52.78 million to $17.24 million.
  • The gross profit margin for ENVISION HEALTHCARE HLDGS is currently extremely low, coming in at 11.99%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.26% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $34.02 million or 65.99% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The debt-to-equity ratio of 1.17 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, EVHC has managed to keep a strong quick ratio of 1.88, which demonstrates the ability to cover short-term cash needs.

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