NEW YORK (TheStreet) -- The Supreme Court will announce its decision on the constitutionality of Obamacare Thursday.
In case you don't remember, the real name of the bill is "Patient Protection and Affordable Care Act." From different surveys I have read, it appears there's a 75% chance that the individual health care mandate in the act will be ruled unconstitutional.
ValuEngine shows that the Medical Sector is 7.4% overvalued, but within that sector, the Health Maintenance Organizations Industry is 5.6% undervalued.
I will evaluate the price performance of nine stocks in this industry focusing on the volatility since March 26, when the Supreme Court began deliberating on Obamacare.
Definitions of the ColumnsOV/UN Valued: Red is the percent undervalued. Black is the percent overvalued. The most undervalued stock is Health Net (HNT), at 23.5% undervalued. The most overvalued is Coventry Healthcare (CVH), at 14.6% overvalued. VE Rating: 5-Engine is Strong Buy. 4-Engine is Buy. The Strong Buys are Aetna Inc (AET), UnitedHealth Group (UNH), Wellcare Health (WCG) and Wellpoint Inc (WLP). Last 12-Month Return (%): Red is negative. Black is positive. UNH is the only stock on the list to post a price rise over the past twelve months with a 17.8% gain. Forecast One-Year Return: Since they are all rated Buy or better, the upside projection is in black. Those with a projected gain of 12% or more garner the 5-Engine, Strong Buy rating. P/E Ratios: The price-to-earnings ratios range from 7.1 to 22.4. Value Level: The price at which to enter a good 'til canceled limit order to buy on weakness (W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual) Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV