Trade-Ideas LLC identified Team Health Holdings ( TMH) as a "perilous reversal" (up big yesterday but down big today) 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 $41.9 million.
  • TMH has traded 61,708 shares today.
  • TMH is down 4.7% today.
  • TMH was up 6% yesterday.

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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 24. Currently there are 11 analysts that rate Team Health Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Team Health Holdings has been 1.1 million shares per day over the past 30 days. Team Health has a market cap of $2.5 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.41 and a short float of 6.1% with 3.67 days to cover. Shares are down 15.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Team Health Holdings as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.2%. Since the same quarter one year prior, revenues rose by 26.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TEAM HEALTH HOLDINGS INC has improved earnings per share by 26.3% 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. This trend suggests that the performance of the business is improving. 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 ($2.67 versus $1.35).
  • TMH'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 44.80%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. 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.
  • The debt-to-equity ratio of 1.33 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, TMH maintains a poor quick ratio of 0.86, which illustrates the inability to avoid short-term cash problems.

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