Back to top

Analyst Blog

Recently, Principal Financial Group Inc. (PFG - Analyst Report) announced a strategic deal with Md.-based Accountable Health, Inc., under which the latter will provide a wide variety of wellness programs to the business and health plan customers of the former. Moreover, Principal Financial will transfer the ownership of its subsidiary – Principal Wellness Company – to Accountable Health. Further, Principal Financial will make financial investment in Accountable Health.

Accountable Health will absorb all the employees of Principal Wellness once the deal is closed. The tentative date for the same is Jul 1, 2013.

Both Accountable Health and Principal Financial are anticipating a seamless transition for the clientele and advisors of the latter. However, the companies did not divulge the financial details of the agreement.

Principal Financial believes that Accountable Health will be able to combine the resources and expertise of both the companies, thus facilitating expansion amid the swiftly transforming and highly competitive environment in the healthcare industry. The company believes that the implementation of the Affordable Care Act will increase business opportunities for the company. Moreover, as an investor of Accountable Health, Principal Financial will gain from the growth of the former.

Accountable Health provides a gamut of healthcare services and strives to enhance the quality, efficiency and cost of delivering these services by creating or acquiring various technology-enabled solutions. Although the company currently is headquartered in Rockville, Md., it plans to open offices in Des Moines and Indianapolis.

Principal Financial currently carries a Zacks Rank #3 (Hold). Other investment management companies worth considering are AllianceBernstein Holding L.P. (AB - Snapshot Report), GAMCO Investors, Inc. (GBL - Snapshot Report) and Noah Holdings Limited (NOAH - Snapshot Report). All these companies carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
CLAYTON WIL… CWEI 117.30 +1.78%