Cross Country Healthcare (CCRN) Stock: Weak On High Volume Today

Trade-Ideas LLC identified Cross Country Healthcare ( CCRN) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cross Country Healthcare as such a stock due to the following factors:

  • CCRN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.6 million.
  • CCRN has traded 109,097 shares today.
  • CCRN is trading at 3.75 times the normal volume for the stock at this time of day.
  • CCRN is trading at a new low 10.07% 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 CCRN:

Cross Country Healthcare, Inc. provides healthcare staffing and workforce solutions in the United States. The company operates through three segments: Nurse and Allied Staffing, Physician Staffing, and Other Human Capital Management Services. CCRN has a PE ratio of 82. Currently there are 4 analysts that rate Cross Country Healthcare a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Cross Country Healthcare has been 480,400 shares per day over the past 30 days. Cross Country Healthcare has a market cap of $373.3 million and is part of the services sector and diversified services industry. The stock has a beta of 0.57 and a short float of 14.2% with 2.69 days to cover. Shares are down 32.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cross Country Healthcare as a hold. 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 and revenue growth. However, as a counter to these strengths, we also find weaknesses including a decline in the stock price during the past year and poor profit margins.

Highlights from the ratings report include:
  • CROSS COUNTRY HEALTHCARE 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 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, CROSS COUNTRY HEALTHCARE INC turned its bottom line around by earning $0.10 versus -$1.02 in the prior year. This year, the market expects an improvement in earnings ($0.69 versus $0.10).
  • 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 69.8% when compared to the same quarter one year prior, rising from -$20.22 million to -$6.10 million.
  • The gross profit margin for CROSS COUNTRY HEALTHCARE INC is currently lower than what is desirable, coming in at 26.13%. Regardless of CCRN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -3.15% trails the industry average.
  • After a year of stock price fluctuations, the net result is that CCRN's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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