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WebMD Health (WBMD) Repurchaces 2 Million Common Shares
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WebMD Health Corp. announced that it has completed a tender offer to purchase 2 million shares of its common stock. The tender offer expired on Thursday, Dec 15, 2016. The buyback was made at a price of $55.00 per share. At the end of the last reported quarter, WebMD had approximately $1.065 billion in cash and investments. The company will use a portion of its cash and investments to fund the tender offer.
For the last six months, the stock represents a negative return of almost 16.48%, wider than the Zacks categorized Internet Contents sub-industry’s gain of roughly 9.98%. Also, the stock lost almost 2.70% to close at $50.02 following the announcement of the news.
However WebMD Health’s long-term growth fundamentals are compelling. The company recorded a three-year CAGR of 6.96% for revenues and 12.67% for adjusted earnings per share.
Meanwhile, the estimate revision trend holds some promise, with three estimates moving north over the past two months and no movement in the opposite direction. Notably, the current year estimates for the stock increased by 6 cents to $1.90 per share over the same time frame. Additionally, the stock promises an earnings yield of 3.68% compared with the industry’s yield of 1.31%.
Going forward, we believe that the focus of the company on acquiring new clients will help WebMD Health gain market traction, which will lead to increased business. It has been a story of constant achievements for the company which provides advertising and sponsorship solutions to targeted demographics and licenses private portal services to employers and health plans.
Based in New York, NY, WebMD Health is a leading provider of health information services, serving consumers, physicians, healthcare professionals, employers, and health plans through public and private online portals, mobile platforms and health-focused publications.
We believe the company is well positioned to capitalize on growth and major changes that are currently driving the healthcare industry. We also believe that the recent changes in Capitol Hill would make the company’s core areas of expertise i.e. the online audience of healthcare consumers and physicians in the U.S. health information market space more geared toward growth.
However, the company’s top line is heavily dependent on the advertising and sponsorship budgets of brands at pharmaceutical manufacturers. This we believe is a major overhang on the company. Other major areas of concern for the company include drug patent expiration, increased formulary restrictions on high-priced launches, and restrictions on drug promotion to physicians and consumers.
Zacks Rank & Key Picks
Currently, WebMD Health has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , LHC Group, Inc. and IDEXX Laboratories, Inc. (IDXX - Free Report) . Addus HomeCare and IDEXX Laboratories sport a Zacks Rank #1 (Strong Buy). Meanwhile, LHC Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 50%.
LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 17.6% in the last three months.
IDEXX Laboratories has an expected earnings growth of almost 15%. The company posted a promising year-to-date return of almost 64%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
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WebMD Health (WBMD) Repurchaces 2 Million Common Shares
WebMD Health Corp. announced that it has completed a tender offer to purchase 2 million shares of its common stock. The tender offer expired on Thursday, Dec 15, 2016. The buyback was made at a price of $55.00 per share. At the end of the last reported quarter, WebMD had approximately $1.065 billion in cash and investments. The company will use a portion of its cash and investments to fund the tender offer.
For the last six months, the stock represents a negative return of almost 16.48%, wider than the Zacks categorized Internet Contents sub-industry’s gain of roughly 9.98%. Also, the stock lost almost 2.70% to close at $50.02 following the announcement of the news.
However WebMD Health’s long-term growth fundamentals are compelling. The company recorded a three-year CAGR of 6.96% for revenues and 12.67% for adjusted earnings per share.
Meanwhile, the estimate revision trend holds some promise, with three estimates moving north over the past two months and no movement in the opposite direction. Notably, the current year estimates for the stock increased by 6 cents to $1.90 per share over the same time frame. Additionally, the stock promises an earnings yield of 3.68% compared with the industry’s yield of 1.31%.
Going forward, we believe that the focus of the company on acquiring new clients will help WebMD Health gain market traction, which will lead to increased business. It has been a story of constant achievements for the company which provides advertising and sponsorship solutions to targeted demographics and licenses private portal services to employers and health plans.
Based in New York, NY, WebMD Health is a leading provider of health information services, serving consumers, physicians, healthcare professionals, employers, and health plans through public and private online portals, mobile platforms and health-focused publications.
We believe the company is well positioned to capitalize on growth and major changes that are currently driving the healthcare industry. We also believe that the recent changes in Capitol Hill would make the company’s core areas of expertise i.e. the online audience of healthcare consumers and physicians in the U.S. health information market space more geared toward growth.
However, the company’s top line is heavily dependent on the advertising and sponsorship budgets of brands at pharmaceutical manufacturers. This we believe is a major overhang on the company. Other major areas of concern for the company include drug patent expiration, increased formulary restrictions on high-priced launches, and restrictions on drug promotion to physicians and consumers.
Zacks Rank & Key Picks
Currently, WebMD Health has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , LHC Group, Inc. and IDEXX Laboratories, Inc. (IDXX - Free Report) . Addus HomeCare and IDEXX Laboratories sport a Zacks Rank #1 (Strong Buy). Meanwhile, LHC Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 50%.
LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 17.6% in the last three months.
IDEXX Laboratories has an expected earnings growth of almost 15%. The company posted a promising year-to-date return of almost 64%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>