Trade-Ideas LLC identified

WebMD Health

(

WBMD

) as a strong on high relative volume 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 $37.0 million.
  • WBMD has traded 633,399 shares today.
  • WBMD is trading at 13.15 times the normal volume for the stock at this time of day.
  • WBMD is trading at a new high 4.03% 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 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 4. Currently there are 6 analysts that rate WebMD Health a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for WebMD Health has been 1.1 million shares per day over the past 30 days. WebMD Health has a market cap of $2.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.52 and a short float of 17.6% with 9.29 days to cover. Shares are up 23.4% year-to-date as of the close of trading on Wednesday.

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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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 66.66% and other important driving factors, this stock has surged by 33.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • WEBMD HEALTH CORP 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, WEBMD HEALTH CORP increased its bottom line by earning $1.49 versus $0.97 in the prior year. This year, the market expects an improvement in earnings ($1.80 versus $1.49).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 68.7% when compared to the same quarter one year prior, rising from $16.28 million to $27.46 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 21.8%. Since the same quarter one year prior, revenues rose by 18.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for WEBMD HEALTH CORP is rather high; currently it is at 63.84%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.29% trails the industry average.

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