All of a sudden the beaten down managed care sector has a lot of fans.
In an article titled “Healthy Prognosis for HMOs,” Investor’s Business Daily notes that “HMOs are not recession-proof, but they are more resistant to cyclical downturns than other industries.” The article quotes Wall Street analysts projecting a bounce-back year for managed care stocks.
Motely Fool points to big gains in several managed care stocks from their 52-week lows, including Cigna, Aetna, UnitedHealth and Humana. The Fool projects that “as the economy improves and more jobs result in more insured employees, the companies will be able to get out of the hospital and back to growing earnings at a healthy clip again.”
Finally, Barron’s says that UnitedHealth “is waking up,” after losing more than half its value in 2008.
O.K., we don’t make stocks calls, but I will say that it’s hard to imagine things being any worse than last year. But then stranger things have happened.
Subscribe in RSS Reader
