We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Reasons Why WellCare Health Stock is a Great Pick Now
Read MoreHide Full Article
Leading managed care company WellCare Health Plans, Inc. remains on the growth track supported by prudent strategies. The Florida-based company has been strengthening its revenue-base consistently over the last 10 years. The Affordable Care Act (ACA) implemented by former U.S. President Barrack Obama also contributed to top-line growth.
However, matters might take a turn for the worse for the insurer now. President Donald Trump’s decision to repeal and replace ACA to completely reform the U.S. Healthcare industry mightlead to a steep decline in Medicaid programsenrollment. Along with other health insurers like Humana Inc. (HUM - Free Report) , UnitedHealth Group, Inc. (UNH - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) , WellCare is likely to witness a pressure on its top line.
In spite of the possibility of the reform affecting WellCare Health’s business, the company remains an attractive pick for investors. Here’s why.
Favorable Share Price Movement
Shares of WellCare Healthhave been performing well. Over the last one year, the stock has gained 94.9%, while the Zacks categorized Health Maintenance Organization (HMO) industry registered 24.8% increase. This reflects the company’s business strength.
Fundamental Growth
WellCare Health has been growing inorganically via strategic acquisitions, partnerships and alliances over last three years. These initiatives have not only helped it bolster its presence in existing markets, but also have contributed significantly to the geographical expansion of its operations. Since 2011, revenues have increased at a four-year CAGR of 22.5%. The company’s healthy balance sheet, mainly backed by its commendable liquidity, has helped it in enhancing shareholders’ value through several capital deployment initiatives.
Undervalued Against the Peers
WellCare Health boasts strong key value statistics. It has a P/S (Price to Sales) ratio of 0.41, which is lower than the industry average of 0.46. The company also has a P/CF (Price to Cashflow) ratio of 4.64, whereas the industry average is 5.00. These metrics strengthen the company’s potential as a value stock.
VGM Score
WellCare Health has a VGM Score of ‘A’. Our VGM Score identifies stocks that have the most attractive value, growth, and momentum characteristics. In fact, our research shows that stocks with VGM Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy) make solid investment choices.
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
4 Reasons Why WellCare Health Stock is a Great Pick Now
Leading managed care company WellCare Health Plans, Inc. remains on the growth track supported by prudent strategies. The Florida-based company has been strengthening its revenue-base consistently over the last 10 years. The Affordable Care Act (ACA) implemented by former U.S. President Barrack Obama also contributed to top-line growth.
However, matters might take a turn for the worse for the insurer now. President Donald Trump’s decision to repeal and replace ACA to completely reform the U.S. Healthcare industry mightlead to a steep decline in Medicaid programsenrollment. Along with other health insurers like Humana Inc. (HUM - Free Report) , UnitedHealth Group, Inc. (UNH - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) , WellCare is likely to witness a pressure on its top line.
In spite of the possibility of the reform affecting WellCare Health’s business, the company remains an attractive pick for investors. Here’s why.
Favorable Share Price Movement
Shares of WellCare Healthhave been performing well. Over the last one year, the stock has gained 94.9%, while the Zacks categorized Health Maintenance Organization (HMO) industry registered 24.8% increase. This reflects the company’s business strength.
Fundamental Growth
WellCare Health has been growing inorganically via strategic acquisitions, partnerships and alliances over last three years. These initiatives have not only helped it bolster its presence in existing markets, but also have contributed significantly to the geographical expansion of its operations. Since 2011, revenues have increased at a four-year CAGR of 22.5%. The company’s healthy balance sheet, mainly backed by its commendable liquidity, has helped it in enhancing shareholders’ value through several capital deployment initiatives.
Undervalued Against the Peers
WellCare Health boasts strong key value statistics. It has a P/S (Price to Sales) ratio of 0.41, which is lower than the industry average of 0.46. The company also has a P/CF (Price to Cashflow) ratio of 4.64, whereas the industry average is 5.00. These metrics strengthen the company’s potential as a value stock.
VGM Score
WellCare Health has a VGM Score of ‘A’. Our VGM Score identifies stocks that have the most attractive value, growth, and momentum characteristics. In fact, our research shows that stocks with VGM Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy) make solid investment choices.
Zacks Rank
WellCare presently has a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>