Strong On High Relative Volume: IPC Healthcare (IPCM)

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 IPC Healthcare ( IPCM) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified IPC Healthcare as such a stock due to the following factors:

  • IPCM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.5 million.
  • IPCM has traded 56,721 shares today.
  • IPCM is trading at 10.64 times the normal volume for the stock at this time of day.
  • IPCM is trading at a new high 6.04% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 IPCM with the Ticky from Trade-Ideas. See the FREE profile for IPCM NOW at Trade-Ideas

More details on IPCM:

IPC Healthcare, Inc. provides acute hospitalist and post-acute care services the United States. The company provides, manages, and coordinates the care of hospitalized patients; and serves as the inpatient partner of primary care physicians and specialists. IPCM has a PE ratio of 26. Currently there are 3 analysts that rate IPC Healthcare a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for IPC Healthcare has been 119,200 shares per day over the past 30 days. IPC Healthcare has a market cap of $882.4 million and is part of the health care sector and health services industry. The stock has a beta of 1.45 and a short float of 4.9% with 7.80 days to cover. Shares are up 10.6% year-to-date as of the close of trading on Thursday.

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 IPC Healthcare as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, IPCM's share price has jumped by 25.92%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, IPCM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.1%. Since the same quarter one year prior, revenues slightly increased by 4.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • IPCM's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.38, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $14.13 million or 38.91% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 0.85%.
  • The gross profit margin for IPC HEALTHCARE INC is currently lower than what is desirable, coming in at 25.78%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 3.54% is above that of the industry average.

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.

More from Markets

Three Big Factors That Rocked the Stock Market Tuesday

Three Big Factors That Rocked the Stock Market Tuesday

Dow Tumbles Over 400 Points; S&P 500 and Nasdaq Also Finish Lower

Dow Tumbles Over 400 Points; S&P 500 and Nasdaq Also Finish Lower

Caterpillar Bulldozes Industrial Sector With Bad News on Earnings Call

Caterpillar Bulldozes Industrial Sector With Bad News on Earnings Call

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Eli Lilly CEO Expresses Confidence in New Rheumatoid Arthritis Drug

Eli Lilly CEO Expresses Confidence in New Rheumatoid Arthritis Drug