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 weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified MedAssets as such a stock due to the following factors:
- MDAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.6 million.
- MDAS has traded 51,680 shares today.
- MDAS is trading at 5.74 times the normal volume for the stock at this time of day.
- MDAS is trading at a new low 4.04% 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MDAS with the Ticky from Trade-Ideas. See the FREE profile for MDAS NOW at Trade-Ideas
More details on MDAS:
MedAssets, Inc., a financial and performance improvement company, provides technology-enabled products and services for hospitals, health systems, and other ancillary healthcare providers in the United States. MDAS has a PE ratio of 49.3. Currently there are 9 analysts that rate MedAssets a buy, 1 analyst rates it a sell, and 6 rate it a hold.
The average volume for MedAssets has been 499,300 shares per day over the past 30 days. MedAssets has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.60 and a short float of 6.1% with 6.14 days to cover. Shares are up 16.2% year-to-date as of the close of trading on Wednesday.
rates MedAssets as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- MEDASSETS INC has improved earnings per share by 37.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MEDASSETS INC turned its bottom line around by earning $0.45 versus -$0.12 in the prior year. This year, the market expects an improvement in earnings ($1.34 versus $0.45).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Technology industry. The net income increased by 29.7% when compared to the same quarter one year prior, rising from $5.08 million to $6.60 million.
- MDAS's revenue growth trails the industry average of 16.0%. Since the same quarter one year prior, revenues slightly increased by 2.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for MEDASSETS INC is currently very high, coming in at 77.36%. Regardless of MDAS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.76% trails the industry average.
- You can view the full MedAssets Ratings Report.