Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Universal Health Services as such a stock due to the following factors:
- UHS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $111.6 million.
- UHS has traded 280,804 shares today.
- UHS traded in a range 233.5% of the normal price range with a price range of $9.22.
- UHS traded above its daily resistance level (quality: 44 days, meaning that the stock is crossing a resistance level set by the last 44 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on UHS:
Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. The stock currently has a dividend yield of 0.4%. UHS has a PE ratio of 16. Currently there are 10 analysts that rate Universal Health Services a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Universal Health Services has been 741,100 shares per day over the past 30 days. Universal Health Services has a market cap of $10.9 billion and is part of the health care sector and health services industry. The stock has a beta of 0.84 and a short float of 1.8% with 1.44 days to cover. Shares are down 6.9% year-to-date as of the close of trading on Thursday.
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rates Universal Health Services 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, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- UNIVERSAL HEALTH SVCS INC reported significant earnings per share improvement 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, UNIVERSAL HEALTH SVCS INC increased its bottom line by earning $5.42 versus $5.13 in the prior year. This year, the market expects an improvement in earnings ($6.90 versus $5.42).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 81.5% when compared to the same quarter one year prior, rising from $82.80 million to $150.29 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.1%. Since the same quarter one year prior, revenues slightly increased by 9.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.75, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.14, which illustrates the ability to avoid short-term cash problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Providers & Services industry and the overall market, UNIVERSAL HEALTH SVCS INC's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full Universal Health Services Ratings Report.