Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Time to care about managed care again, states Oppenheimer

Published 14/02/2023, 19:48
Updated 14/02/2023, 19:48
© Reuters.

© Reuters.

By Sam Boughedda

Oppenheimer analysts believe it is time to care about managed care once again.

The firm favors a basket approach to the group, with stocks such as Centene (NYSE:CNC), Cigna Corp (NYSE:CI), Humana (NYSE:HUM) and UnitedHealth Group (NYSE:UNH) among its favorite targets.

The analysts stated in their note to clients that following two strong years for managed care, the group's stock performance has "significantly lagged" the overall market this year.

Oppenheimer believes this is primarily driven by several overhangs, including MA policy, questions around the timing of the PHE, and uncertainty around 2023 guidance.

However, the analysts said that while "most of the overhangs have now passed," the sector has remained under pressure, which they believe is "largely due to rotation into the 'risk-on' stocks, leaving the defensive-oriented healthcare stocks as a source of funds."

"Nevertheless, we believe the end of the selling should come in short order, especially as the group's fundamentals remain quite strong, with earnings/guidance remaining on a strong trajectory and utilization remaining stable," the analysts added. "Furthermore, following the underperformance in the group, valuations appear increasingly attractive."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.