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

  • AFAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.1 million.
  • AFAM has traded 52,625 shares today.
  • AFAM is trading at 2.29 times the normal volume for the stock at this time of day.
  • AFAM is trading at a new low 7.02% 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 AFAM:

Almost Family, Inc. provides home health services in the United States. AFAM has a PE ratio of 25. Currently there is 1 analyst that rates Almost Family a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Almost Family has been 138,500 shares per day over the past 30 days. Almost Family has a market cap of $419.8 million and is part of the health care sector and health services industry. The stock has a beta of 0.57 and a short float of 4.8% with 2.29 days to cover. Shares are up 52.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Almost Family as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • ALMOST FAMILY INC reported significant earnings per share improvement 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. During the past fiscal year, ALMOST FAMILY INC increased its bottom line by earning $1.47 versus $0.94 in the prior year. This year, the market expects an improvement in earnings ($2.08 versus $1.47).
  • 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 245.2% when compared to the same quarter one year prior, rising from $1.27 million to $4.39 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.0%. Since the same quarter one year prior, revenues slightly increased by 6.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AFAM's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AFAM has a quick ratio of 1.92, which demonstrates the ability of the company to cover short-term liquidity needs.

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