Research on Humana and WellPoint: Healthcare Industry Prepares for Reforms

Feb 15, 2013, 08:00 ET from

LONDON, February 15, 2013 /PRNewswire/ --

Healthcare industry is one of the most watched industrial sectors. With the upcoming healthcare regulations, the companies will need to restructure their businesses to ensure their long-term viability. However, some companies like WellPoint Inc. (NYSE: WLP) are better placed to withstand the new changes. The industry will see a paradigm shift under the new healthcare reforms. One of such changes pertains to the creation of health insurance exchanges. As many as 18 states are planning to establish such exchanges by 2014. Leading healthcare company Humana Inc. (NYSE: HUM) is planning to participate in the program in 10 states. StockCall has posted free technical research reports on Humana and WellPoint and these can be accessed by signing up at

WellPoint Appoints New CEO

WellPoint recently made a major management change and appointed Joseph Swedish as its new CEO. The appointment is being seen as a strategy change by industry analysts. It seems that WellPoint may be following the lead of other industry giants to enter into the medical care segment. If the company is indeed looking to jump into the medical care segment, then it will be a big change in its direction. It may also provide an opportunity for WellPoint to add synergistic services to its business. WellPoint Inc. technical report can be accessed for free by signing up at

WellPoint appreciated over 3 percent this year. It is expected to perform well in the wake of impending changes to the healthcare sector. However, the company provided value to its investors by buying back its stock. During its fiscal fourth quarter, the company repurchased $668 million worth of its stock, while it spent $2.5 billion in the full year for buyback purposes. In addition, the company also offers nearly 2 percent dividend yield.

The company is well positioned to benefit from the new regulations. It is one of the largest healthcare providers in the country. It also enhanced its position by acquiring Amerigroup. The healthcare company is serious in its efforts to grow and also acquired 1-800 CONTACTS in 2012. It reported its fourth quarter net income at $1.03 per share while its full year net income stood at $7.56 a piece.

Humana Reports Quarterly Results

Humana Inc. posted lower net income for its fourth quarter but it surpassed estimates. At $1.19 per share, Humana's net income per share beat estimates of $1.07 in net income per share. Its revenue for the quarter increased to $9.56 billion. Despite revenue increase, the company failed to meet the expectations for this metrics. Download the free report on Humana Inc. upon registration at

Humana's stock grew over 13 percent in the past 52 weeks and is expected to perform well as the company presented a good outlook for its fiscal first quarter. The company is expected to earn between $1.44 and $1.53 per share in the first quarter.

Humana is also gearing to adapt itself to new changes being brought about in the industry, pursuant to healthcare reforms. It is currently in the process of determining its modus operandi for health insurance exchanges. A per company management, Humana is planning to enter the exchange mechanism in ten states.

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