Wellpoint Inc (WLP)
Response to Fangstar’s question of deciding between buying Wellpoint Inc(WLP) or UnitedHealth Group (UNH)
Wellpoint Inc (WLP) and UnitedHealth Group (UNH) both seem to be undervalued equally. Their earnings growth over the past year seems to be nearly identical, and they are trading at a similar P/E ratio. Analysts are also predicting similar earnings growth rate in the future.
The only difference I see is that UNH has the options scandal in the background. Personally, I don’t think it is that big of a deal, but you never know how the market might react when the actual charge is revealed. So, that is a negative for UNH. The positive I see is that UNH has had a higher earnings growth rate over the past 5 years than WLP. But, both of these stocks are undervalued.
Wellpoint Inc (WLP) and UnitedHealth Group (UNH) both seem to be undervalued equally. Their earnings growth over the past year seems to be nearly identical, and they are trading at a similar P/E ratio. Analysts are also predicting similar earnings growth rate in the future.
The only difference I see is that UNH has the options scandal in the background. Personally, I don’t think it is that big of a deal, but you never know how the market might react when the actual charge is revealed. So, that is a negative for UNH. The positive I see is that UNH has had a higher earnings growth rate over the past 5 years than WLP. But, both of these stocks are undervalued.
posted by Amit Dhuleshia at 7:53 PM
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