NEW YORK (TheStreet) -- On July 3 we learned that the implementation of an important component of the Affordable Care Act would be delayed one year to January 2015.Under Obamacare employers with more than 50 employees were mandated to provide health care coverage by January 2014, or pay a fine based upon the number of employees. The delay of one year caused health maintenance stocks to drift lower until recovering with the stock market on Friday and Monday. In my judgment this one year delay may be beneficial to both employers and the health care companies as it gives them the time to work on new more affordable health plans and avoid the pending penalties. Providing health care benefits should be considered a cost of doing business, and if these costs can be better managed between businesses and providers, companies can strategize on their business plans rather than avoiding the mandate. This delay provides a window of opportunity for additional economic growth. On April 3 I wrote, Health Insurers Gain On Medicare Advantage where I profiled eight health maintenance stocks. Four were rated buy and four were rated hold. Only three had performed positively over the last 12 months at that time. Since this post Coventry Health was acquired by Aetna ( AET), so today's table of health care stocks totals seven companies. ValuEngine shows that the medical industry is 19.3% overvalued with the health maintenance industry 12.2% overvalued. I continue to give the medical sector an equal-weight asset allocation rating.
Aetna ($63.26 vs. $54.30 on April 3): Set a multi-year high at $64.22 on July 1 before the Obamacare delay was announced. My annual value level is $62.77 and a monthly pivot at $63.19. Centene ( CNC - Get Report) ($54.49 vs. $44.57 on April 3): Set a new multi-year high at $54.63 on Monday and has been downgraded to hold from buy. My semiannual value level is $50.96 with a monthly risky level at $54.85. Health Net ( HNT) ($32.07 vs. $29.12 on April 3): Has been moving sideways since setting its 2013 high at $33.30 on April 29. My quarterly value level is $25.06 with an annual pivot at $32.54 and annual risky level at $35.35. Humana ( HUM - Get Report) ($84.27 vs. $79.11 on April 3): Has been upgraded to buy from hold since April 3. My quarterly value level is $76.55 with an annual risky level at $89.78. UnitedHealth Group ( UNH - Get Report) ($67.56 vs. $61.74 on April 3): Set a new multi-year high at $67.58 on Monday and has been downgraded to hold from buy. My semiannual value level is $62.39 with a semiannual risky level at $73.01. WellCare Health Plans ( WCG - Get Report) ($57.86 vs. $62.57 on April 3): Moved back above its 50-day and 200-day SMAs at $54.46 and $53.59 on June 27. The stock has been downgraded to hold from buy. My weekly value level is $50.66 with a quarterly pivot at $57.40 and monthly risky level at $60.04. WLP) ($83.09 vs $68.46 on April 3): Set a multi-year high at $83.16 on Monday and has been downgraded to hold from buy. My monthly value level is $77.28 with a semiannual pivot at $81.89 and semiannual risky level at $83.77. At the time of publication the author held no positions in any of the stocks mentioned. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.