Trade-Ideas: Team Health Holdings (TMH) Is Today's Post-Market Leader Stock

Trade-Ideas LLC identified Team Health Holdings ( TMH) as a post-market leader 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 $54.1 million.
  • TMH is up 9.8% today from today's close.

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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 28. 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 664,800 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 1.13 and a short float of 12.1% with 6.27 days to cover. Shares are down 5.1% year-to-date as of the close of trading on Tuesday.

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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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 35.1%. 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.
  • Net operating cash flow has significantly increased by 1048.79% to $29.15 million when compared to the same quarter last year. In addition, TEAM HEALTH HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of 19.56%.
  • 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 ($2.80 versus $1.12).
  • 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 97.6% when compared to the same quarter one year ago, falling from $28.05 million to $0.67 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 28.25%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 97.36% 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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