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
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Healthways as such a stock due to the following factors:
- HWAY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.7 million.
- HWAY has traded 694,782 shares today.
- HWAY is up 3.6% today.
- HWAY was down 7.5% yesterday.
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More details on HWAY:
Healthways, Inc., through its subsidiaries, provides specialized solutions to assist people to maintain and enhance their physical, emotional, and social well-being. Currently there are 4 analysts that rate Healthways a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Healthways has been 755,100 shares per day over the past 30 days. Healthways has a market cap of $357.7 million and is part of the health care sector and health services industry. The stock has a beta of 0.50 and a short float of 24.6% with 3.69 days to cover. Shares are down 2.8% year to date as of the close of trading on Thursday.
rates Healthways as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.2%. Since the same quarter one year prior, revenues slightly increased by 0.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, HWAY's share price has jumped by 70.33%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Net operating cash flow has slightly increased to $12.47 million or 2.33% when compared to the same quarter last year. Despite an increase in cash flow of 2.33%, HEALTHWAYS INC is still growing at a significantly lower rate than the industry average of 139.34%.
- 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 64.2% when compared to the same quarter one year ago, falling from $5.03 million to $1.80 million.
- The gross profit margin for HEALTHWAYS INC is rather low; currently it is at 21.31%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.08% trails that of the industry average.
- You can view the full Healthways Ratings Report.