NYSE:WLP
$61.60
(2/9 10:26AM)
-0.1%
| Open | $62.15 |
Mkt Cap | $28.3 Billion |
| High | $62.29 |
52Wk High | $70.00 |
| Low | $61.42 |
52Wk Low | $29.32 |
| Volume | 1.1 Million |
Avg Vol 10D | 6.0 Million |
Ockham's Rating/Recommendation Summary
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WLP Revenue
As a value investing shop, we are interested in seeing how WLP's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 0.95x and the low end of the range at 0.59x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for WLP of 0.43x is well below its normal historic Price to Sales levels. At a price of $61.69, WLP is 44% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
WLP Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of WLP, Ockham views their current Cash Earnings as significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from WLP. For example, WLP's Cash Earnings ratio per share has fluctuated between 12.06 and 19.98 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where WLP is with respect to prior business periods.
So with WLP's current price (latest close of $61.69) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, WLP is 25% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with WLP.
WLP Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for WLP to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. WLP may pay a dividend at this time; however, there is an insufficient amount of history to incorporate it into our analysis. Therefore, we are not utilizing the dividends or lack thereof in our study. As WLP more consistent dividend history is made available, we will begin to factor this into the Ockham approach.
RazorWire has Detected News About WLP on Mad Money
The latest news on Mad Money in regards to WLP came through on RazorWire recently.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WLP has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe WellPoint, Incorporated will beat the market in the foreseeable future. We consider WLP as Undervalued at the current price of $65.05. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… WELLPOINT up 46% from their october lows and this is what we're looking for from now on. Unless you think these stocked rally because health care reform seems to be dead on ... …”
WellPoint, Incorporated (WLP) Discussed on Fox Business's Countdown to the Closing Bell
WellPoint, Incorporated is in the news. Find out how this impacts WLP trading on Ockham Research.
Founder of the company that will try to make the world a better place. And WELLPOINT to be king estimates today we'll talk to the cfo in the fox business exclusive about the earnings report and health care plan being considered by congrs. The
“… And WELLPOINT to be king estimates today we'll talk to the cfo in the fox business exclusive about the earnings report and health care plan being considered by congrs. The. …”
WellPoint, Incorporated EPS: A Hot Topic on Seeking Alpha Wall St Breakfast
Whenever a reliable source like Seeking Alpha Wall St Breakfast talks about earnings or news on earnings, we think it warrants bringing attention to it.
WellPoint, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Ranking all stocks in terms of news coverage offers some interesting data. In the case of WLP, it is getting significantly more attention in recent news coverage than we are used to seeing. Due to deterioration in our valuation, we downgraded WLP as of Sunday, February 07, 2010.
“… (PR) WELLPOINT Health Networks (WLP): Q4 EPS of $1. 16 beats by $0. 14. Revenue of $15. 1B (-2%) in-line. (PR) Earnings: Tuesday After Close Altera (ALTR): Q4 EPS of $0. …”
WellPoint, Incorporated News is Being Covered Right Now on Mad Money
As always, the latest news on WLP is available to Ockham clients through RazorWire, and it was mentioned recently on Mad Money.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WLP has been less covered in the news compared to the rest of our universe of stocks. We consider WLP as Undervalued at the current price of $65.50. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The Motley Fool CAPS data suggests that investors believe WellPoint, Incorporated will beat the market in the foreseeable future.
“… Stay with bristol-myers, cov, and WELLPOINT. They don't need health care reform and can do just fine without government help. Stay with cramer. > > > …”
WLP Gets Mentioned in the Financial Media
The latest news from Mad Money on WLP is available through Ockham's news analytics platform RazorWire.
The Motley Fool CAPS data suggests that investors believe WellPoint, Incorporated will beat the market in the foreseeable future. We consider WLP as Undervalued at the current price of $65.10. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WLP has been less covered in the news compared to the rest of our universe of stocks.
“… But if you want to stick with a group, you can own bristol-myers, and WELLPOINT as they look like they have room to run. Let's go to alex in arkansas, please. Alex? > > …”
Mad Money Discussed Dividends and WLP
If WLP's dividends are important to you, take a look at the news as they were the topic of conversation on Mad Money.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WLP has been less covered in the news compared to the rest of our universe of stocks. We consider WLP as Undervalued at the current price of $65.10. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The Motley Fool CAPS data suggests that investors believe WellPoint, Incorporated will beat the market in the foreseeable future.
“… We like WELLPOINT, the least affected by washington. And it's already up 35% since we recommended it october 29th at 47. …”
Interested in WLP? See What the Pundits Said on Mad Money
The latest news from Mad Money on WLP is available through Ockham's news analytics platform RazorWire.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on WLP, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, WellPoint, Incorporated has actually sunk a bit in comparison to the others.
“… I told you to buy all the hmos, everything from cramer faved WELLPOINT to humana. Also rehab care, rhb, a solid rehabilitation facility operator in spite of the massive medicare ... …”
Its All About Earnings: Power Lunch Talks About WLP
Any suprise in earnings can cause a major swing in stock prices, so we are always on the lookout for the freshest news available for earnings reports or expectations.
We noticed recently that in comparison to all other stocks we analyze in the news; WLP has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Based on our methodology, WellPoint, Incorporated should hold some appeal to value investors as we view it as Undervalued.
“… The day after that republican win here are how some of the health insurers are trading and giving back gains a little bit, WELLPOINT. > > …”
WellPoint, Incorporated Was Talked About by Power Lunch
News has broken via the television and viral blogs regarding WLP, so investors should take an interest in learning what was said.
Based on our methodology, WellPoint, Incorporated should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; WLP has received less coverage from the financial media in business television and blogs.
“… For WELLPOINT over the past three months it's a gain of 42%. 50% for unh. How do you play this group right now? Would you take profits here? > > …”
The Opening Bell on Fox Business Discussed the Latest Development of WellPoint, Incorporated
The latest news from The Opening Bell on Fox Business on WLP is available through Ockham's news analytics platform RazorWire.
We noticed recently that in comparison to all other stocks we analyze in the news; WLP has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Based on our methodology, WellPoint, Incorporated should hold some appeal to value investors as we view it as Undervalued.
“… Chris: it does not take away uncertainty though, charles you said WELLPOINT, aetna, united health care, all the stocks weren't on a huge run. …”