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Aetna (AET) has a very bullish Chaikin Power Gauge stock rating and triggered a Momentum Breakout Buy signal in Chaikin Analytics on Monday when it moved back above its upper volatility band. AET was hammered after it announced a takeover bid for Humana (HUM), but the stock has been slowly rebuilding, even as profit-taking has been seen in the Health Care sector as a whole.
Yesterday the Health Care sector saw renewed institutional buying with AET leading the way.
Aetna is one of the largest insurance and financial services companies in the U.S. and as one of the largest health benefits organizations in America, it provides a full range of health insurance, pharmacy benefits and dental plans to employer and plan sponsor subscribers in all 50 states.
Aetna’s 2nd quarter earnings report on August 4th showed a 33% increase year over year and beat analyst estimates by 13%. The company also guided higher for the balance of 2015. If its proposed acquisition of Humana passes regulatory review, Aetna gains 14.2 million medical customers, including 3.2 million in the private health plans for the elderly known as Medicare Advantage.
With renewed interest in the Health Care Sector and an average analyst target of $139.40, Aetna is an attractive way to benefit from the consolidation taking place in the health care insurance and benefits sector.
Aetna Inc. has a very bullish Chaikin Power Gauge stock rating that is driven across the board by all four Components of the Chaikin Power Gauge: Financial Metrics, Earnings, Technicals and Expert Opinions. The specific factors that stand out are bullish consistency of earnings, a low projected price to earnings ratio, positive relative strength to the broad market and the strength of the Medical Care industry group.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
