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The aging baby-boomer demographic is a trend many investors are aware of, but not everyone knows how to cash in on it. Healthcare companies who have received positive ratings by industry analysts is one way to invest in the changing population model. Today we focused on healthcare companies of this nature, narrowing in on companies that look undervalued from a price-multiple perspective. We think you'll find our list rather interesting.

The Price/Sales ratio is a price-multiple valuation metric used to help identify if a firm is cheap by its twelve month trailing sales numbers. In the most basic terms it let's an investor know how much the investment community is willing to pay for every dollars worth of sales. A firm with a P/S ratio of one or lower would be viewed as cheap because investors are paying $1 or less for every dollars worth of a firm's sales. On the other hand, a firm is generally considered to be expensive when the P/S ratio is above three. These are general guidelines used by the investment community not hard rules to be clear.

Price/Sales Ratio = Current Stock Price/Revenue (sales) per Share

The Price/Cash Flow ratio is a price-multiple valuation metric that also measures a firm's future financial health. An advantage of using cash flow is that it removes non-cash factors, which helps provide a clearer picture of how much money the firm is taking in from a valuation standpoint.

Price/Cash Flow Ratio = Current Stock Price/Cash Flow Per Share

We first looked for healthcare stocks. We then looked for businesses that analysts rate as "Buy" (2 < mean recommendation < 3). We next screened for businesses that are trading at a discount (P/S<1)(P/CFO<10). We did not screen out any market caps.

Do you think these stocks will continue to see such strong profitability? Please use our list to assist with your own analysis.

1) Humana Inc. (NYSE:HUM)

Sector:Healthcare
Industry:Health Care Plans
Market Cap:$12.94B
Beta:1.11

Humana Inc. has a Analysts' Rating of 2.00, a Price/Sales Ratio of 0.34, and a Price/Cash Flow Ratio of 1.12. The short interest was 1.07% as of 06/18/2012. Humana Inc. operates as a health care company that offers a range of insurance products and health and wellness services that incorporate an integrated approach to lifelong well-being. Its Retail segment provides Medicare and commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products to individuals. The company's Employer Group segment offers Medicare and commercial fully-insured medical and specialty health insurance benefits, as well as administrative services to employer groups.

2) Unitedhealth Group, Inc. (NYSE:UNH)

Sector:Healthcare
Industry:Health Care Plans
Market Cap:$61.65B
Beta:0.90

Unitedhealth Group, Inc. has a Analysts' Rating of 1.80, a Price/Sales Ratio of 0.59, and a Price/Cash Flow Ratio of 5.29. The short interest was 1.10% as of 06/18/2012. UnitedHealth Group Incorporated operates as a diversified health and well-being company in the United States. The company's UnitedHealthcare segment offers consumer-oriented health benefit plans and services to national employers, public sector employers, mid-sized employers, small businesses, and individuals; health and well-being services to individuals aged 50 and older addressing their needs for preventive and acute health care services; health plans and care programs to beneficiaries of acute and long-term care Medicaid plans; and specialty benefits, such as dental, vision, life, and disability products. This segment serves through a network of 754,000 physicians and other health care professionals, and 5,400 hospitals. Its OptumHealth segment provides personalized health management services, decision support services, access to networks of care provider specialists, well-being solutions, behavioral health management solutions, financial services, and clinical services.

3) Select Medical Holdings Corporation (NYSE:SEM)

Sector:Healthcare
Industry:Hospitals
Market Cap:$1.36B
Beta:-

Select Medical Holdings Corporation has a Analysts' Rating of 2.40, a Price/Sales Ratio of 0.48, and a Price/Cash Flow Ratio of 147.15. The short interest was 2.75% as of 06/18/2012. Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates specialty hospitals and outpatient rehabilitation clinics in the United States. The company's Specialty Hospitals segment offers long term acute care hospital services and inpatient acute rehabilitative hospital care. This segment provides services for various medical conditions, such as respiratory failure, neuromuscular disorders, traumatic brain and spinal cord injuries, strokes, non-healing wounds, cardiac disorders, renal disorders, and cancer.

4) Aetna Inc. (NYSE:AET)

Sector:Healthcare
Industry:Health Care Plans
Market Cap:$14.28B
Beta:1.24

Aetna Inc. has a Analysts' Rating of 2.10, a Price/Sales Ratio of 0.42, and a Price/Cash Flow Ratio of 17.65. The short interest was 1.14% as of 06/18/2012. 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 Health Care segment provides medical, pharmacy benefit management, dental, behavioral health, and vision plans.

5) WellPoint Inc. (WLP)

Sector:Healthcare
Industry:Health Care Plans
Market Cap:$23.60B
Beta:0.97

WellPoint Inc. has a Analysts' Rating of 2.00, a Price/Sales Ratio of 0.39, and a Price/Cash Flow Ratio of 10.36. The short interest was 2.06% as of 06/18/2012. WellPoint, Inc., through its subsidiaries, operates as a health benefits company in the United States. The company offers various network-based managed care plans to large and small employer, individual, Medicaid, and senior markets. Its managed care plans include preferred provider organizations; health maintenance organizations; point-of-service plans; traditional indemnity plans; and other hybrid plans, including consumer-driven health plans, hospital only, and limited benefit products.

6) Cigna Corp. (NYSE:CI)

Sector:Healthcare
Industry:Health Care Plans
Market Cap:$13.00B
Beta:1.39

Cigna Corp. has a Analysts' Rating of 2.00, a Price/Sales Ratio of 0.56, and a Price/Cash Flow Ratio of 6.16. The short interest was 1.78% as of 06/18/2012. CIGNA Corporation, a health services organization, through its subsidiaries, provides insurance and related products and services in the United States and internationally. Its Health Care segment offers insured and self-insured medical, dental, behavioral health, vision, and prescription drug benefit plans; health advocacy programs; and other products and services that may be integrated to provide health care benefit programs, as well as operates retail pharmacies. The company's Disability and Life segment offers various insurance products and related services, including group long-term and short-term disability insurance; group life insurance products comprising group term life and group universal life; and personal accident insurance consisting of accidental death and dismemberment, and travel accident insurance to employers. This segment also provides specialty insurance services that primarily include disability and life, accident, and hospital indemnity products to professional or trade associations, and financial institutions.

7) Coventry Health Care Inc. (CVH)

Sector:Healthcare
Industry:Health Care Plans
Market Cap:$4.70B
Beta:1.79

Coventry Health Care Inc. has a Analysts' Rating of 2.40, a Price/Sales Ratio of 0.37, and a Price/Cash Flow Ratio of 2.52. The short interest was 3.60% as of 06/18/2012. Coventry Health Care, Inc. operates as a managed healthcare company in the United States. The company's Health Plan and Medical Services division provides health plan commercial risk, commercial management services, Medicare advantage coordinated care plans, and Medicaid products. It also offers commercial risk products, including health maintenance organization, preferred provider organization, and point of service products to individuals and employer groups.

*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Yahoo Finance.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 7 Discounted Healthcare Stocks Analysts Love