Wednesday, February 2, 2011

Stock Idea: WellPoint (WLP, $64.48)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at Please visit!)

WellPoint (WLP)
is a health benefits company serving over 30 million medical members. Earnings per share are projected to fall slightly in 2011 by 2.7% to $6.56 per share, then increase in the next two fiscal years by 11.0% and 8.1%. The PE is quite low at 9.0. Is there room for the PE to expand now that a Federal judge declared that citizens' mandatory purchases of Obamacare is unconstitutional, and there is less risk that Obamacare will put medical insurance companies out of business? I would think so.

The stock price looks like it's ready to rise above the recent $48-$65 range, possibly retracing its former high of $90 before the stock fell with the financial meltdown of 2008.


The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.

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