This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Rocket Stocks to Buy for February

Stocks in this article: DELL AET BBBY BRCM AME

Aetna

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Health insurer Aetna (AET), one of TheStreet Ratings' top-rated managed health care stocks, provides coverage for more than 18 million consumers in the U.S., giving the firm a spot in the health insurance oligarchy that's dominated by a handful of large firms. Although the company is far from the league leader, being one of the "smaller" of the huge insurers actually provides Aetna some advantages in this market.

One advantage is the fact that there's additional room for AET to capture more growth opportunities than its lumbering peers. The firm managed to do just that with its full year 2011 earnings call at the start of the month.

While health care reform legislation has been a big concern for all insurers in recent years, Aetna has actually used new bills to its advantage as a bargaining chip, squeezing out concessions from its contracted healthcare providers. The result is a firm with deeper margins and proven negotiating prowess, a winning combination in the managed care business.

Aetna's business generates significant free cash flows, some of which are used to support a modest 1.6% dividend yield. The firm should look to increase shareholder payouts if it wants to capture investment capital from income investors who are currently more taken by higher-yielding rivals. The firm has the financial health to support a dividend hike in 2012.

>>7 Dividend Stocks Paying Out More Cash in 2012

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs