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Why You Should Hold eHealth (EHTH) Stock in Your Portfolio
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eHealth’s (EHTH - Free Report) solid Medicare and Individual, Family and Small Business performance and sturdy financial position along with favorable growth estimates make it worthy of retaining in one’s portfolio.
Zacks Rank & Price Performance
eHealth currently carries a Zacks Rank #3 (Hold). In the past month, the stock has gained 8.3% against the industry’s decrease of 1.3%. The Finance sector and the Zacks S&P 500 composite have risen 5.9% and 3%, respectively in the said time frame.
Growth Projections
The Zacks Consensus Estimate for 2021 earnings is pegged at $5.41, indicating an upside of 29.6% from the year-ago reported figure on 28% expected increase in revenues to $842 million.
Return on Equity (ROE)
Return on equity, a measure to identify how efficiently the company is utilizing its shareholders’ fund, was 11.1% in the last reported quarter of 2020, up from 4.7% in the year-ago period.
Estimate Revision
The Zacks Consensus Estimate for 2021 moved 0.4% north in the past seven days, reflecting analyst optimism.
Earnings Surprise History
eHealth delivered earnings surprise in each of the last seven reported quarters with the average beat being 127.45%, reflecting operational excellence.
Business Tailwinds
eHealth is making continued investments in Medicare-related marketing initiatives and expansion of telesales capacity and online sales capability. This in turn will fuel growth in Medicare business. With continued momentum in the online Medicare enrollments, the private health insurance exchange service provider estimates 53% online penetration by 2024.
Substantial increase in estimated lifetime values of individual and family plan members should continue to drive Individual, Family and Small Business segment.
The company plans to ramp up its revenues at a five-year CAGR of 27% by 2024 and achieve adjusted EBITDA margin of 38%.
Debt Free Balance Sheet
The company boasts a debt free balance sheet with $197.8 million in cash, cash equivalents and marketable securities as of Sep 30, 2020.
Stocks to Consider
Some better-ranked stocks in the same space include Fidelity National Financial (FNF - Free Report) , Alleghany Corporation and W.R. Berkley Corporation (WRB - Free Report) .
Alleghany delivered an earnings surprise of 195.85% in the last reported quarter. It sports a Zacks Rank #1.
W.R. Berkley delivered an earnings surprise of 4.84% in the last reported quarter. It carries a Zacks Rank #2 (Buy).
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Why You Should Hold eHealth (EHTH) Stock in Your Portfolio
eHealth’s (EHTH - Free Report) solid Medicare and Individual, Family and Small Business performance and sturdy financial position along with favorable growth estimates make it worthy of retaining in one’s portfolio.
Zacks Rank & Price Performance
eHealth currently carries a Zacks Rank #3 (Hold). In the past month, the stock has gained 8.3% against the industry’s decrease of 1.3%. The Finance sector and the Zacks S&P 500 composite have risen 5.9% and 3%, respectively in the said time frame.
Growth Projections
The Zacks Consensus Estimate for 2021 earnings is pegged at $5.41, indicating an upside of 29.6% from the year-ago reported figure on 28% expected increase in revenues to $842 million.
Return on Equity (ROE)
Return on equity, a measure to identify how efficiently the company is utilizing its shareholders’ fund, was 11.1% in the last reported quarter of 2020, up from 4.7% in the year-ago period.
Estimate Revision
The Zacks Consensus Estimate for 2021 moved 0.4% north in the past seven days, reflecting analyst optimism.
Earnings Surprise History
eHealth delivered earnings surprise in each of the last seven reported quarters with the average beat being 127.45%, reflecting operational excellence.
Business Tailwinds
eHealth is making continued investments in Medicare-related marketing initiatives and expansion of telesales capacity and online sales capability. This in turn will fuel growth in Medicare business. With continued momentum in the online Medicare enrollments, the private health insurance exchange service provider estimates 53% online penetration by 2024.
Substantial increase in estimated lifetime values of individual and family plan members should continue to drive Individual, Family and Small Business segment.
The company plans to ramp up its revenues at a five-year CAGR of 27% by 2024 and achieve adjusted EBITDA margin of 38%.
Debt Free Balance Sheet
The company boasts a debt free balance sheet with $197.8 million in cash, cash equivalents and marketable securities as of Sep 30, 2020.
Stocks to Consider
Some better-ranked stocks in the same space include Fidelity National Financial (FNF - Free Report) , Alleghany Corporation and W.R. Berkley Corporation (WRB - Free Report) .
Fidelity National delivered an earnings surprise of 18.40% in the last reported quarter. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alleghany delivered an earnings surprise of 195.85% in the last reported quarter. It sports a Zacks Rank #1.
W.R. Berkley delivered an earnings surprise of 4.84% in the last reported quarter. It carries a Zacks Rank #2 (Buy).
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>