Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified WellPoint as such a stock due to the following factors:
- WLP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $257.0 million.
- WLP has traded 20,846 shares today.
- WLP is trading at a new lifetime high.
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More details on WLP:
WellPoint, Inc., a health benefits company, through its subsidiaries, provides a range of medical products in the United States. The company offers a spectrum of network-based managed care health benefit plans to large and small employer, individual, Medicaid, and senior markets. The stock currently has a dividend yield of 1.5%. WLP has a PE ratio of 14.8. Currently there are 7 analysts that rate WellPoint a buy, no analysts rate it a sell, and 11 rate it a hold.
The average volume for WellPoint has been 1.8 million shares per day over the past 30 days. WellPoint has a market cap of $32.7 billion and is part of the health care sector and health services industry. The stock has a beta of 0.50 and a short float of 4.7% with 6.14 days to cover. Shares are up 32.3% year-to-date as of the close of trading on Wednesday.
rates WellPoint as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 44.54% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WLP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- WLP's revenue growth trails the industry average of 18.9%. Since the same quarter one year prior, revenues slightly increased by 3.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.63, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, WLP has a quick ratio of 1.63, which demonstrates the ability of the company to cover short-term liquidity needs.
- WELLPOINT INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WELLPOINT INC increased its bottom line by earning $8.66 versus $8.13 in the prior year. This year, the market expects an improvement in earnings ($8.73 versus $8.66).
- You can view the full WellPoint Ratings Report.