Trade-Ideas: Vanguard Health Systems (VHS) Is Today's New Lifetime High Stock

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 Vanguard Health Systems ( VHS) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Vanguard Health Systems as such a stock due to the following factors:

  • VHS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.1 million.
  • VHS has traded 671,054 shares today.
  • VHS is trading at a new lifetime high.

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More details on VHS:

Vanguard Health Systems, Inc. owns and operates general acute care and specialty hospitals, and outpatient facilities in urban and suburban markets in the United States. Currently there are no analysts that rate Vanguard Health Systems a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Vanguard Health Systems has been 959,300 shares per day over the past 30 days. Vanguard Health Systems has a market cap of $1.6 billion and is part of the health care sector and health services industry. The stock has a beta of 1.21 and a short float of 4.6% with 3.92 days to cover. Shares are unchanged year to date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Vanguard Health Systems as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and generally higher debt management risk.

Highlights from the ratings report include:
  • VHS's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 4.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 104.26% to $210.80 million when compared to the same quarter last year. In addition, VANGUARD HEALTH SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of -27.35%.
  • VANGUARD HEALTH SYSTEMS INC's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VANGUARD HEALTH SYSTEMS INC increased its bottom line by earning $0.75 versus $0.70 in the prior year. This year, the market expects an improvement in earnings ($0.77 versus $0.75).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Providers & Services industry. The net income has decreased by 24.9% when compared to the same quarter one year ago, dropping from $19.30 million to $14.50 million.
  • The gross profit margin for VANGUARD HEALTH SYSTEMS INC is currently extremely low, coming in at 10.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.95% trails that of the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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