Both stocks got buy ratings from TheStreet Ratings.
The health care benefits company reported earlier this month fourth-quarter earnings of $372.6 million, or $1.02 a share, up from a year-ago profit of $215.6 million, or 53 cents a share."Overall, this was another solid quarter for the diversifieds, and we believe guidance for the group appears highly conservative given continued low utilization trends," Oppenheimer analysts wrote in a Feb. 2 report. "We believe Aetna will perform in line with the group, and we reiterate our Perform rating." Shares of Aetna reached a 52-week high Monday of $46.50. The stock's 52-week low of $33.43 was set on Oct. 4. Aetna has a forward price-to-earnings ratio for next year of 8.23X; the average for health care providers is 21.09X. For comparison, Express Scripts (ESRX) and Humana (HUM) both have higher forward P/Es of 13.77X and 9.75X respectively. Of the 20 analysts who cover Aetna, 13 rated it a buy and seven gave it a hold rating. TheStreet Ratings gives Aetna an A+ grade with a buy rating and has a $60.11 price target on the shares. The stock has risen 9.67% year to date.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV