4-Star Stocks Poised to Pop: WellPoint
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, health insurer WellPoint (NYS: WLP) has earned a respected four-star ranking.
With that in mind, let's take a closer look at WellPoint's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Indianapolis (1944)|
|Market Cap||$23.5 billion|
|Industry||Managed health care|
|Trailing-12-Month Revenue||$60.1 billion|
|Management||CEO Angela Braly (since 2007)|
CFO Wayne DeVeydt (since 2007)
|Return on Equity (Average, Past 3 Years)||14.6%|
|Cash/Debt||$20.2 billion / $10.8 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 925 members who have rated WellPoint believe the stock will outperform the S&P 500 going forward.
Excellent Valuation, confirmed by strong buybacks. Plus diversification because Healthcare insurance is negatively correlated with economic cycle. During recessions people don't go to the doctor and that improves margins at insurers. Still some obamacare hangover in the health insurance sector.
But before you run out and start gobbling up shares, some of WellPoint's competitors might actually be better suited to your own individual investing profile.
Aetna (NYS: AET) shares, for example, have performed much better than WellPoint's over the past few months, so it might be a better choice for Fools craving some price momentum. Meanwhile, UnitedHealth's (NYS: UNH) big dividend hikes of late may make it more suitable to income-oriented investors. And growth seekers will probably be more attracted to Medco Health Solutions' (NYS: MHS) higher expected five-year earnings growth rate. However, when you consider that WellPoint sports a lower price-to-earnings multiple than each of its peers mentioned above, the stock seems nicely suited for value hounds looking to get into the space.
What do you think about WellPoint, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of UnitedHealth Group. Motley Fool newsletter services have recommended buying shares of WellPoint, UnitedHealth Group, and Medco Health Solutions; and creating a diagonal call position in UnitedHealth Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.