Accretive Health's Shares Got Crushed: What You Need to Know
Nov 9th 2011 3:16PM
Updated Nov 9th 2011 4:04PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of health-care revenue management expert Accretive Health (NYS: AH) don't look all that healthy today after falling as much as 13.5% on more than triple their average trading volume.
So what: The third-quarter report missed Street targets by slim margins on both the top and bottom lines, and management also slashed the fourth-quarter outlook.
Now what: Accretive is a tremendously volatile stock that has gained 161% in fits and starts over the last 52 weeks -- yes, even after today's terrible drop. Rivals athenahealth (NAS: ATHN) and HMS (NAS: HMSY) have also crushed the market as hospitals search high and low for more efficient IT tools amid severe budget crunches, while MedAssets (NAS: MDAS) hasn't been so lucky. Will Accretive ever grow into its outsized P/E ratio? Only time will tell, but our watchlist feature can make sure you don't miss a beat as the long-term story develops.
Interested in more info about Accretive Health? Click here to add it to My Watchlist.
At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies mentioned. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.