Trade-Ideas LLC identified

WebMD Health

(

WBMD

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified WebMD Health as such a stock due to the following factors:

  • WBMD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.9 million.
  • WBMD has traded 251 options contracts today.
  • WBMD is making at least a new 3-day high.
  • WBMD has a PE ratio of 39.
  • WBMD is mentioned 0.84 times per day on StockTwits.
  • WBMD has not yet been mentioned on StockTwits today.
  • WBMD is currently in the upper 20% of its 1-year range.
  • WBMD is in the upper 35% of its 20-day range.
  • WBMD is in the upper 45% of its 5-day range.
  • WBMD is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on WBMD:

WebMD Health Corp. provides health information services to consumers, physicians and other healthcare professionals, employers, and health plans through its public and private online portals, mobile platforms, and health-focused publications in the United States. WBMD has a PE ratio of 39. Currently there are 7 analysts that rate WebMD Health a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for WebMD Health has been 366,800 shares per day over the past 30 days. WebMD Health has a market cap of $1.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.82 and a short float of 14.2% with 14.03 days to cover. Shares are up 24.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates WebMD Health as a

buy

. 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, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • WEBMD HEALTH CORP has improved earnings per share by 39.1% 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, WEBMD HEALTH CORP increased its bottom line by earning $0.97 versus $0.33 in the prior year. This year, the market expects an improvement in earnings ($1.44 versus $0.97).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Internet Software & Services industry average. The net income increased by 34.5% when compared to the same quarter one year prior, rising from $9.81 million to $13.19 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 15.1%. Since the same quarter one year prior, revenues slightly increased by 6.3%. 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 WEBMD HEALTH CORP is rather high; currently it is at 60.98%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, WBMD's net profit margin of 8.64% significantly trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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