Trade-Ideas LLC identified Team Health Holdings ( TMH) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Team Health Holdings as such a stock due to the following factors:

  • TMH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.5 million.
  • TMH has traded 977,334 shares today.
  • TMH traded in a range 261% of the normal price range with a price range of $4.35.
  • TMH traded above its daily resistance level (quality: 26 days, meaning that the stock is crossing a resistance level set by the last 26 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on TMH:

Team Health Holdings, Inc. provides outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. TMH has a PE ratio of 38. Currently there are 13 analysts that rate Team Health Holdings a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Team Health Holdings has been 626,500 shares per day over the past 30 days. Team Health has a market cap of $3.8 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.40 and a short float of 4.3% with 4.78 days to cover. Shares are down 8.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Team Health Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 30.1%. 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.
  • TEAM HEALTH HOLDINGS INC's earnings per share declined by 7.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TEAM HEALTH HOLDINGS INC increased its bottom line by earning $1.35 versus $1.23 in the prior year. This year, the market expects an improvement in earnings ($2.71 versus $1.35).
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Providers & Services industry and the overall market, TEAM HEALTH HOLDINGS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • 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 Health Care Providers & Services industry average. The net income has decreased by 4.2% when compared to the same quarter one year ago, dropping from $30.20 million to $28.94 million.
  • The gross profit margin for TEAM HEALTH HOLDINGS INC is rather low; currently it is at 18.58%. 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 3.29% is above that of the industry average.

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