Today's Strong And Under The Radar Stock Is Envision Healthcare Holdings (EVHC)

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 Envision Healthcare Holdings ( EVHC) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Envision Healthcare Holdings as such a stock due to the following factors:

  • EVHC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.9 million.
  • EVHC is making at least a new 3-day high.
  • EVHC has a PE ratio of 55.
  • EVHC is mentioned 1.03 times per day on StockTwits.
  • EVHC has not yet been mentioned on StockTwits today.
  • EVHC is currently in the upper 20% of its 1-year range.
  • EVHC is in the upper 35% of its 20-day range.
  • EVHC is in the upper 45% of its 5-day range.
  • EVHC is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on EVHC:

Envision Healthcare Holdings, Inc. provides physician-led, outsourced medical services to consumers, hospitals, healthcare systems, health plans, and government entities in the United States. EVHC has a PE ratio of 55. Currently there are 12 analysts that rate Envision Healthcare Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Envision Healthcare Holdings has been 1.8 million shares per day over the past 30 days. Envision Healthcare has a market cap of $7.1 billion and is part of the health care sector and health services industry. Shares are up 10.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Envision Healthcare Holdings as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally higher debt management risk.

Highlights from the ratings report include:
  • EVHC's revenue growth has slightly outpaced the industry average of 13.1%. Since the same quarter one year prior, revenues rose by 22.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ENVISION HEALTHCARE HLDGS has improved earnings per share by 30.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ENVISION HEALTHCARE HLDGS increased its bottom line by earning $0.66 versus $0.06 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $0.66).
  • The debt-to-equity ratio of 1.25 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, EVHC has managed to keep a strong quick ratio of 1.88, which demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for ENVISION HEALTHCARE HLDGS is currently extremely low, coming in at 12.02%. 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 2.68% is above that of the industry average.

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