EHealth (EHTH) 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.

Trade-Ideas LLC identified eHealth ( EHTH) as a weak on high relative volume 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 $5.0 million.
  • EHTH has traded 96,445 shares today.
  • EHTH is trading at 3.12 times the normal volume for the stock at this time of day.
  • EHTH is trading at a new low 3.18% 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.

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 health insurance services in the United States and China. Currently there are 2 analysts that rate eHealth a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for eHealth has been 270,400 shares per day over the past 30 days. eHealth has a market cap of $204.9 million and is part of the financial sector and insurance industry. The stock has a beta of 2.42 and a short float of 9.2% with 2.87 days to cover. Shares are down 54.1% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates eHealth as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 significantly decreased by 880.5% when compared to the same quarter one year ago, falling from -$1.96 million to -$19.20 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Insurance industry and the overall market, EHEALTH INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$4.08 million or 166.10% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 74.70%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 881.81% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • EHEALTH INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, EHEALTH INC swung to a loss, reporting -$0.93 versus $0.07 in the prior year. This year, the market expects an improvement in earnings (-$0.22 versus -$0.93).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

null

More from Markets

Global Stocks March Higher as Upbeat Powell, Robust Earnings Ignite the Bulls

Global Stocks March Higher as Upbeat Powell, Robust Earnings Ignite the Bulls

Jim Cramer: Bank of America Expects 4% Economic Growth in Q2

Jim Cramer: Bank of America Expects 4% Economic Growth in Q2

Google, Morgan Stanley, IBM and Texas Instruments - 5 Things You Must Know

Google, Morgan Stanley, IBM and Texas Instruments - 5 Things You Must Know

European Tech Earnings Provide Solid Case for Global Sector Outlook

European Tech Earnings Provide Solid Case for Global Sector Outlook

Google Facing Record $5 Billion EU Fine Following Android App Probe - Reports

Google Facing Record $5 Billion EU Fine Following Android App Probe - Reports