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 www.GoodfellowLLC.com. 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.


Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

I am not paid to promote nor disparage any investment. My recommendations are based on hypothetical situations of what I would do, not advice on what you should do. The information provided herein is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. Investments are risky, and can go down in value. Past investment results are not indicative of future returns. I am not a licensed investment advisor nor a tax advisor. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment. This is not a solicitation to buy or sell any security.

No comments: