HMS Holdings (HMSY) Showing Signs Of Being Strong And Under The Radar

Trade-Ideas LLC identified HMS Holdings ( HMSY) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified HMS Holdings as such a stock due to the following factors:

  • HMSY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.8 million.
  • HMSY has traded 27.477599999999998914290699758566915988922119140625 options contracts today.
  • HMSY is making at least a new 3-day high.
  • HMSY has a PE ratio of 65.
  • HMSY is mentioned 0.97 times per day on StockTwits.
  • HMSY has not yet been mentioned on StockTwits today.
  • HMSY is currently in the upper 20% of its 1-year range.
  • HMSY is in the upper 35% of its 20-day range.
  • HMSY is in the upper 45% of its 5-day range.
  • HMSY is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in HMSY with the Ticky from Trade-Ideas. See the FREE profile for HMSY NOW at Trade-Ideas

More details on HMSY:

HMS Holdings Corp., through its subsidiaries, operates in the healthcare insurance benefit cost containment market in the United States. HMSY has a PE ratio of 65. Currently there are 8 analysts that rate HMS Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for HMS Holdings has been 605,800 shares per day over the past 30 days. HMS has a market cap of $1.6 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.03 and a short float of 3.2% with 6.41 days to cover. Shares are up 52.4% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates HMS Holdings as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • HMSY's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.74, which clearly demonstrates the ability to cover short-term cash needs.
  • 37.12% is the gross profit margin for HMS HOLDINGS CORP which we consider to be strong. Regardless of HMSY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.80% trails the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Health Care Technology industry and the overall market, HMS HOLDINGS CORP's return on equity is below that of both the industry average and the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Will Aston Martin IPO Result in 163% Gains Like Ferrari?

Will Aston Martin IPO Result in 163% Gains Like Ferrari?

Dow, S&P 500 Set Record Highs as Wall Street Looks Past Trade Fears

Dow, S&P 500 Set Record Highs as Wall Street Looks Past Trade Fears

'I Don't Think Anyone Should Apologize for Being Successful' Says Ken Langone

'I Don't Think Anyone Should Apologize for Being Successful' Says Ken Langone

Record Market Highs May Herald Volatility and Uncertainty

Record Market Highs May Herald Volatility and Uncertainty

Jeb Bush: Mid-Terms Could Be Another Wave Election

Jeb Bush: Mid-Terms Could Be Another Wave Election