Healthcare Stocks: UnitedHealth Group and Humana

Catch me if you Can - Doctor - Leonardo DiCaprio Frank Abangale

The Masters concur that these stocks should be considered for trading.

Healthcare stocks have seen better days with the exception of Aetna Inc (AET)UnitedHealth Group (UNH) and Humana Inc (HUM) are both trading near the bottom of their 12 month range.  It could be a comeback opportunity for these stocks by betting on the sector is 'out of favor' with Wall Street.

We talk up these stocks in order of preference with UnitedHealth coming in first place for greatest potential for ROI in 2013.  The problem with the entire healthcare sector is what will happen with Medicare?  The 'fiscal cliff resolution' didn't solve the big problems that is impacting our healthcare providers.  Expect these stocks to bumble around for another two to four months while the bigger issues are worked on.  However being early to the party could prove benefical for UNH and HUM if the analysts covering the stocks are right on the money.

1. UNH $52.37 a share with a 1.62% dividend yield
UnitedHealth Group Inc (UNH) is trading at $52.37 and its shares are 4.87% from its 52-week low.  UnitedHealth Group Inc (UNH) shares have traded between $49.82 and $60.75 over the past 12 months.  UNH shares are now trading with a P/E Ratio of 9.8 and EPS of 5.25.  The average target price for the analysts covering UNH (according to finviz.com) inplies a 27% return in 12 months.

Ticker Current Price Target Price % Increase
UNH $52.37  $66.34 26.7%


unh

2. AET $44.98 a share with a 1.78% dividend yield

Aetna Inc.(AET) is trading at $ 44.98 and its shares are now 13.69% below its 52-week high.  Aetna Inc (AET) shares have traded between $34.58 and $51.14 over the past 12 months.  AET shares are now trading with a P/E Ratio of 8.5 and EPS of 5.25.  The average target price for the analysts covering AET (according to finviz.com) inplies a 17% return in 12 months.

Ticker Current Price Target Price % Increase
AET $44.98  $52.67 17.1%

aet

3. HUM $66.91 a share with a 1.55% dividend yield
Humana Inc. (HUM) is trading at $66.91 and its shares are 10.45% from its 52-week low.  Over the past 12 months Humana Inc (HUM) shares have traded between $59.92 and its 52-week high of $96.46.  HUM shares are now trading with a P/E Ratio of 8.8 and EPS of 7.48.  The average target price for the analysts covering AET (according to finviz.com) inplies a 24% return in 12 months.

Ticker Current Price Target Price % Increase
HUM $66.91  $83.12 24.2%

HUM