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
TheStreet Open House

Consider Two Potential Winners of Obamacare

Stock quotes in this article: CNC, MOH, WCG, C

The new buyback plan replaces a $75 million repurchase program that Molina's board adopted last February. Although the company doesn't pay a dividend yet, as of June 30 MOH had a deep cash cache of around $31.99 per share, so the potential for a future dividend is certainly feasible.

MOH reports its latest quarterly earnings on Oct. 21 and analysts are calling for an enormous increase in earnings-per-share (EPS) from the same quarter last year. From 7 cents a share a year ago to 31 cents a share this year will equate to nearly a 443% growth in EPS.

Revenue and sales growth is expected to increase by nearly 12% for the latest quarter, but by year's end the annual increase in revenue over 2012 may see a jaw-dropping 771% annual improvement.

Analysts expect Molina's EPS to increase 40% in 2014 to $2.26, which would make MOH the fastest-growing insurer traced by Thomson Reuters.

The company will apparently be a big beneficiary from the decision so far by 26 states to expand their Medicaid programs. That equals almost $5 billion in added Medicaid expenditures.

WellCare Health Plans has a very similar business model and growth trajectory. WCG provides managed care services targeted to government-sponsored health care programs, focusing on Medicaid and Medicare.

Headquartered in Tampa, WellCare offers a variety of health plans for families, children, and the aged, blind, and disabled, as well as prescription drug plans. The company served approximately 2.8 million members nationwide as of June 30, 2013.

On Oct. 2, WellCare announced that it has added eight new counties across three states to its 2014 Medicare Advantage service area. With the addition of these new counties, WellCare will offer Medicare Advantage plans in 210 counties in 14 states.

WellCare steps into the earnings confessional on Nov.1 and the consensus EPS estimate among analysts is for nearly a 50% year-over-year quarterly improvement. The revenue and sales growth increase is also anticipated to be up by an impressive 31% for the latest quarter compared with the year-ago quarter.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

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