RadNet (RDNT) Weak On High Volume

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 RadNet ( RDNT) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified RadNet as such a stock due to the following factors:

  • RDNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.6 million.
  • RDNT has traded 53,380 shares today.
  • RDNT is trading at 2.31 times the normal volume for the stock at this time of day.
  • RDNT is trading at a new low 3.14% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on RDNT:

RadNet, Inc. provides outpatient diagnostic imaging services in the United States. Currently there is 1 analyst that rates RadNet a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for RadNet has been 553,900 shares per day over the past 30 days. RadNet has a market cap of $335.9 million and is part of the health care sector and health services industry. The stock has a beta of 1.65 and a short float of 3.7% with 2.28 days to cover. Shares are up 357.5% year-to-date as of the close of trading on Friday.

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 RadNet as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 71.42% and other important driving factors, this stock has surged by 160.78% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • 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 91.5% when compared to the same quarter one year prior, rising from $2.69 million to $5.14 million.
  • RADNET INC reported significant earnings per share improvement 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, RADNET INC reported lower earnings of $0.06 versus $1.62 in the prior year. This year, the market expects an improvement in earnings ($0.24 versus $0.06).
  • 39.48% is the gross profit margin for RADNET INC which we consider to be strong. Regardless of RDNT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RDNT's net profit margin of 2.87% compares favorably to 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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