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

  • AIRM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.4 million.
  • AIRM has traded 397,129 shares today.
  • AIRM is trading at 28.01 times the normal volume for the stock at this time of day.
  • AIRM is trading at a new low 14.00% 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 AIRM:

Air Methods Corporation, together with its subsidiaries, provides air medical emergency transport services and systems in the United States. The company operates in the Air Medical Services (AMS), Tourism, and United Rotorcraft (UR) segments. AIRM has a PE ratio of 16. Currently there are 4 analysts that rate Air Methods a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Air Methods has been 429,400 shares per day over the past 30 days. Air Methods has a market cap of $1.6 billion and is part of the services sector and transportation industry. The stock has a beta of 1.87 and a short float of 35.5% with 44.83 days to cover. Shares are down 5.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Air Methods as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income, revenue growth, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • AIR METHODS CORP has improved earnings per share by 10.3% 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 two years. We feel that this trend should continue. During the past fiscal year, AIR METHODS CORP increased its bottom line by earning $2.57 versus $1.54 in the prior year. This year, the market expects an improvement in earnings ($2.99 versus $2.57).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Health Care Providers & Services industry average. The net income increased by 16.0% when compared to the same quarter one year prior, going from $10.89 million to $12.63 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.6%. Since the same quarter one year prior, revenues slightly increased by 7.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has significantly increased by 127.83% to $34.40 million when compared to the same quarter last year. In addition, AIR METHODS CORP has also vastly surpassed the industry average cash flow growth rate of -17.08%.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Providers & Services industry and the overall market, AIR METHODS CORP's return on equity exceeds that of both the industry average and the S&P 500.

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