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 coveted five-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.
Managed health care
CEO Angela Braly (since 2007)
Return on Equity (average, past 3 years)
$19.7 billion / $10.2 billion
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 979 members who have rated WellPoint believe the stock will outperform the S&P 500 going forward.
Shareholder value over the past 10 years has increased at a rate that justifies a price of [$70 per share] or below at a 15 percent discount rate. I don't see the profitability changing, particularly as the health care reform increases the volume of incoming premiums -- and if health care reform goes away, the current price is still fair. In other words, there's a lot of upside with little risk.
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The article 5-Star Stocks Poised to Pop: WellPoint originally appeared on Fool.com.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of WellPoint. Motley Fool newsletter services have recommended buying shares of WellPoint and UnitedHealth, as well as creating a diagonal call position in UnitedHealth. 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 Fool's disclosure policy always gets a perfect score.
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