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 $29.3 million.
  • TMH has traded 235,912 shares today.
  • TMH traded in a range 220.5% of the normal price range with a price range of $3.33.
  • TMH traded above its daily resistance level (quality: 63 days, meaning that the stock is crossing a resistance level set by the last 63 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 37. Currently there are 9 analysts that rate Team Health Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Team Health Holdings has been 1.0 million shares per day over the past 30 days. Team Health has a market cap of $3.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.11 and a short float of 14.2% with 12.96 days to cover. Shares are down 1.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Team Health Holdings as a hold. Among the primary strengths of the company is its robust revenue growth -- not just in the most recent periods but in previous quarters as well. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.3%. Since the same quarter one year prior, revenues rose by 23.9%. 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 has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TEAM HEALTH HOLDINGS INC reported lower earnings of $1.12 versus $1.35 in the prior year. This year, the market expects an improvement in earnings ($2.85 versus $1.12).
  • The debt-to-equity ratio is very high at 3.74 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, TMH's quick ratio is somewhat strong at 1.13, demonstrating the ability to handle short-term liquidity needs.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Providers & Services industry. The net income has significantly decreased by 160.3% when compared to the same quarter one year ago, falling from $16.10 million to -$9.72 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.56%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 159.09% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, TMH is still more expensive than most of the other companies in its industry.

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