Monday, June 3, 2013

Investopedia: WellPoint Cheaper Than UnitedHealth, But The Risks Are Higher

The managed care world is still quite unsettled as the industry prepares for the post-Affordable Care Act world. While a government-mandated floor on medical expenses will put a greater premium on the operating leverage of the largest players, nobody quite knows for certain what participation in state exchanges will mean for enrollment, premiums, and profits.

That's the world that companies like UnitedHealth (NYSE:UNH), WellPoint (NYSE:WLP), Aetna (NYSE:AET), and Cigna (NYSE:CI) all face. But there's more on the table for WellPoint, as years of questionable execution have led to underperformance in terms of both financials and stock market performance. With a new CEO, a strong base in individual and small group plans, and a low bar, can WellPoint deliver on what looks like an otherwise unfairly large discount to its peers?

Please read more here:
http://www.investopedia.com/stock-analysis/060313/wellpoint-cheaper-unitedhealth-risks-are-higher-wlp-unh-ci-aet.aspx

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