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 eHealth ( EHTH) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified eHealth as such a stock due to the following factors:
- EHTH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.1 million.
- EHTH has traded 116,815 shares today.
- EHTH is down 3% today.
- EHTH was up 20.7% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in EHTH with the Ticky from Trade-Ideas. See the FREE profile for EHTH NOW at Trade-Ideas More details on EHTH: eHealth, Inc. provides online private health insurance services for individuals, families, and small businesses in the United States. EHTH has a PE ratio of 122.1. Currently there are 6 analysts that rate eHealth a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for eHealth has been 321,700 shares per day over the past 30 days. eHealth has a market cap of $886.7 million and is part of the financial sector and insurance industry. The stock has a beta of 0.83 and a short float of 12.7% with 2.46 days to cover. Shares are up 23.6% year-to-date as of the close of trading on Thursday. 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 eHealth 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 deteriorating net income, premium valuation and poor profit margins. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.0%. Since the same quarter one year prior, revenues rose by 11.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- Net operating cash flow has increased to $8.68 million or 25.25% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -23.48%.
- Compared to its closing price of one year ago, EHTH's share price has jumped by 74.06%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- The gross profit margin for EHEALTH INC is currently extremely low, coming in at 3.94%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 0.41% trails that of the industry average.
- 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 Insurance industry. The net income has decreased by 15.1% when compared to the same quarter one year ago, dropping from $0.21 million to $0.17 million.
- You can view the full eHealth Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.