Wednesday, January 8, 2014

The Motley Fool: Aetna Inc. Has Bold Ambitions In A Changing Health Insurance World

Not to belabor the point, but the Affordable Care Act (perhaps better known as "ObamaCare") is going to change the health insurance market in some pretty significant ways – even though the actual percentage of uninsured Americans isn't/wasn't as large as many people guess. In any event, Aetna (NYSE: AET  ) is approaching this new environment rather boldly. Not only has Aetna put other insurers like UnitedHealth (NYSE: UNH  ) to shame with its participation in health care exchanges, but the company has openly targeted double-digit top and bottom-line growth on a long-term basis.

I do believe Aetna's reach exceeds its grasp. The good news is that the Street isn't fully buying the story either, and actually seems to be undervaluing even a more modest outlook. I expect plenty of noise and turbulence over the next year or two as the sector adapts to the new operating environment, but Aetna looks intriguing right now.

Please read more here:
http://www.fool.com/investing/general/2014/01/08/aetna-inc-has-bold-ambitions-in-a-changing-health.aspx

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