Aetna (AET): Stock With Unusual Social Activity

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 Aetna ( AET) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Aetna as such a stock due to the following factors:

  • AET has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 1.93 mentions/day.
  • AET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $166.8 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on AET:

Aetna Inc. operates as a diversified health care benefits company in the United States. The company operates in three segments: Health Care, Group Insurance, and Large Case Pensions. The stock currently has a dividend yield of 1.3%. AET has a PE ratio of 13.6. Currently there are 11 analysts that rate Aetna a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Aetna has been 2.5 million shares per day over the past 30 days. Aetna has a market cap of $24.7 billion and is part of the health care sector and health services industry. The stock has a beta of 0.87 and a short float of 1.6% with 1.96 days to cover. Shares are down 0.5% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Aetna as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, attractive valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 11.4%. Since the same quarter one year prior, revenues rose by 46.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, AET's share price has jumped by 40.65%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AET should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has significantly increased by 540.61% to $1,071.10 million when compared to the same quarter last year. In addition, AETNA INC has also vastly surpassed the industry average cash flow growth rate of 7.80%.
  • The net income growth from the same quarter one year ago has exceeded that of the Health Care Providers & Services industry average, but is less than that of the S&P 500. The net income increased by 3.9% when compared to the same quarter one year prior, going from $499.20 million to $518.60 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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