Trade-Ideas LLC identified

WellCare Health Plans

(

WCG

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

  • WCG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.4 million.
  • WCG has traded 243.5819999999999936335370875895023345947265625 options contracts today.
  • WCG is making at least a new 3-day high.
  • WCG has a PE ratio of 32.
  • WCG is mentioned 1.94 times per day on StockTwits.
  • WCG has not yet been mentioned on StockTwits today.
  • WCG is currently in the upper 20% of its 1-year range.
  • WCG is in the upper 35% of its 20-day range.
  • WCG is in the upper 45% of its 5-day range.
  • WCG 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 WCG:

WellCare Health Plans, Inc. provides managed care services for government-sponsored health care programs. It operates through three segments: Medicaid Health Plans, Medicare Health Plans, and Medicare PDPs. WCG has a PE ratio of 32. Currently there are 4 analysts that rate WellCare Health Plans a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for WellCare Health Plans has been 471,100 shares per day over the past 30 days. WellCare Health Plans has a market cap of $4.4 billion and is part of the health care sector and health services industry. The stock has a beta of 0.75 and a short float of 8.7% with 8.10 days to cover. Shares are up 28.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates WellCare Health Plans 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, largely solid financial position with reasonable debt levels by most measures 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:

  • WELLCARE HEALTH PLANS 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 year. We feel that this trend should continue. During the past fiscal year, WELLCARE HEALTH PLANS INC increased its bottom line by earning $2.67 versus $1.45 in the prior year. This year, the market expects an improvement in earnings ($4.63 versus $2.67).
  • 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 112.0% when compared to the same quarter one year prior, rising from $17.50 million to $37.10 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.5%. Since the same quarter one year prior, revenues slightly increased by 2.0%. 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 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, WCG has a quick ratio of 1.74, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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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