WellCare Health Plans (WCG - Free Report) closed the most recent trading day at $331.27, making no change from the previous trading session. This change was narrower than the S&P 500's 0.28% loss on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.03%.
Coming into today, shares of the Medicare and Medicaid coverage provider had gained 4.26% in the past month. In that same time, the Medical sector gained 1.32%, while the S&P 500 gained 3.31%.
Investors will be hoping for strength from WCG as it approaches its next earnings release. On that day, WCG is projected to report earnings of $2.18 per share, which would represent year-over-year growth of 33.74%. Our most recent consensus estimate is calling for quarterly revenue of $7.10 billion, up 16.92% from the year-ago period.
Any recent changes to analyst estimates for WCG should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.57% higher. WCG is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, WCG currently has a Forward P/E ratio of 19.39. Its industry sports an average Forward P/E of 17.24, so we one might conclude that WCG is trading at a premium comparatively.
We can also see that WCG currently has a PEG ratio of 1.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WCG's industry had an average PEG ratio of 1.23 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WCG in the coming trading sessions, be sure to utilize Zacks.com.