Team Health Holdings (TMH) Reaches New Lifetime High Today

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

  • TMH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.0 million.
  • TMH has traded 143,530 shares today.
  • TMH is trading at a new lifetime high.

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More details on TMH:

Team Health Holdings, Inc. provides outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. TMH has a PE ratio of 40.8. Currently there are 7 analysts that rate Team Health Holdings a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Team Health Holdings has been 480,700 shares per day over the past 30 days. Team Health has a market cap of $3.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.35 and a short float of 3.9% with 7.68 days to cover. Shares are up 61.8% year to date as of the close of trading on Wednesday.

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 Team Health Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • TMH's revenue growth has slightly outpaced the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 13.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 43.9% when compared to the same quarter one year prior, rising from $20.45 million to $29.43 million.
  • Net operating cash flow has significantly increased by 838.29% to $52.34 million when compared to the same quarter last year. In addition, TEAM HEALTH HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of 326.03%.
  • The gross profit margin for TEAM HEALTH HOLDINGS INC is rather high; currently it is at 56.13%. 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 2.63% trails the industry average.
  • Powered by its strong earnings growth of 36.66% and other important driving factors, this stock has surged by 72.47% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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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