Aetna Inc. (AET) Buy or Sell Stock Guide

Last updated: Jun 03, '18

The analysis below may be helpful to you if you have any of the following questions about AET stock:

  • Is AET a buy or a sell?
  • Should I sell or hold AET stock today?
  • Is AET a good buy / a good investment?
  • What are AET analyst opinions, recommendations, ratings?

Here are AET stock buy reasons/signals:

1. Aetna's large membership base gives it significant competitive advantages. This dynamic will be enhanced if it can execute a rollup strategy of smaller health insurers.

2. The firm’s solid operations within the group market niche positions it well in one of the most profitable health-insurance segments.

3. Aetna’s large geographic reach should allow it to participate in several exchanges nationwide.

4. AET forward dividend yield is 1.12%, higher than the industry (0.47%) and sector (0.14%) forward dividend yields.

5. AET average analyst rating is Buy.

6. AET average analyst price target ($201.75) is above its current price ($176.60).

Here are AET stock sell reasons/signals:

1. The overhaul of the U.S. healthcare market has built unprecedented uncertainty into the operating environment for Aetna.

2. Increased transparency and competition will pressure pricing and profits for MCOs.

3. Aetna’s growth prospects are strong; however, this will most likely come from lower profit cohorts.

4. AET quarterly revenue growth was -5.60%, lower than the industry and sector average revenue growth (5.07% and 3.70%, respectively).

5. AET profitability is declining. The YoY profit margin change was -0.45pp.

6. AET PEG ratio (P/E adjusted for growth) is 1.61, and it’s high compared to its industry peers’ PEG ratios.

What are your thoughts on AET?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Comments (0)expand_more