Lagging In Post-Market Activity: HCA Holdings (HCA)

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 HCA Holdings ( HCA) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified HCA Holdings as such a stock due to the following factors:

  • HCA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $169.0 million.
  • HCA is down 2.4% today from today's close.

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More details on HCA:

HCA Holdings, Inc., through its subsidiaries, provides health care services in the United States. HCA has a PE ratio of 14.6. Currently there are 15 analysts that rate HCA Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for HCA Holdings has been 3.5 million shares per day over the past 30 days. HCA has a market cap of $20.4 billion and is part of the health care sector and health services industry. The stock has a beta of 1.88 and a short float of 1.5% with 1.07 days to cover. Shares are up 52% year to date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates HCA Holdings as a sell. Among the areas we feel are negative, one of the most important has been the company's poor growth in earnings per share.

Highlights from the ratings report include:
  • HCA HOLDINGS INC's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, HCA HOLDINGS INC reported lower earnings of $3.49 versus $5.31 in the prior year. For the next year, the market is expecting a contraction of 5.2% in earnings ($3.31 versus $3.49).
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Health Care Providers & Services industry average. The net income increased by 1.4% when compared to the same quarter one year prior, going from $360.00 million to $365.00 million.
  • Net operating cash flow has increased to $900.00 million or 37.40% when compared to the same quarter last year. Despite an increase in cash flow of 37.40%, HCA HOLDINGS INC is still growing at a significantly lower rate than the industry average of 324.61%.
  • Investors have driven up the company's shares by 30.69% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in HCA do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 4.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

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