Everyday Health (EVDY) Is Weak On High Volume Today

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

  • EVDY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
  • EVDY has traded 131,356 shares today.
  • EVDY is trading at 5.96 times the normal volume for the stock at this time of day.
  • EVDY is trading at a new low 3.04% 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 EVDY:

Everyday Health, Inc. provides digital health and wellness solutions. The company's portfolio includes Websites, mobile applications, and social media assets that provide consumers and healthcare professionals with access to health and wellness content. EVDY has a PE ratio of 1. Currently there are 2 analysts that rate Everyday Health a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Everyday Health has been 224,900 shares per day over the past 30 days. Everyday Health has a market cap of $428.2 million and is part of the technology sector and computer software & services industry. Shares are down 5.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Everyday Health as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income.

Highlights from the ratings report include:
  • EVDY's revenue growth has slightly outpaced the industry average of 5.9%. Since the same quarter one year prior, revenues slightly increased by 9.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • EVDY's debt-to-equity ratio of 0.67 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that EVDY's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.33 is high and demonstrates strong liquidity.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Internet Software & Services industry average. The net income has decreased by 4.0% when compared to the same quarter one year ago, dropping from -$7.76 million to -$8.07 million.
  • EVDY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 26.34%, which is also worse than the performance of the S&P 500 Index. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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