5 Worst-Performing Health Insurance Stocks of 2019
- By Holly LaFon
In an otherwise torrid stock market, one sector has cooled.
Health insurance stocks have plunged almost across the board year to date, as Congress considers multiple Medicare for All proposals. If these ultimately don't pass, a number of Democratic candidates for the 2020 presidential election have made implementing the policy one of their primary campaign promises.
Warning! GuruFocus has detected 3 Warning Signs with WFC. Click here to check it out.
The intrinsic value of XLV
The threat of sweeping health coverage change has reverberated through the health care sector. UnitedHealth CEO David Wichman blasted Medicare for All in a conference call last Tuesday, saying that it would "destabilize the nation's health system." His company, which has recorded an 18.9% profit growth rate over the past five years, saw its stock decline 8.93% year to date.
On a broader scale, the S&P Health Care ETF (XLV) has declined 0.68% this year, trailing all other sectors and the 15.92% advance in the S&P 500 index. The iShares U.S. Healthcare Providers ETF - which features health insurance, diagnostics and specialized treatment companies - is down 6.74% year to date.
According to the GuruFocus All-In-One screener, all but one of the companies in the out-of-favor Health Care Plans industry has dropped in stock price year to date. The worst performers are: Cigna Corp. (CI), CVS Health Corp. (CVS), Centene Corp. (CNC), Humana Inc. (HUM) and Health Insurance Innovations Inc. (HIIQ).
Cigna Corp. (CI)
Shares of employer health insurance provider Cigna fell 21.52% year to date, more than any other stock in its industry. Down 0.68% Monday, they closed at $147.99 Monday.
Eighteen investors GuruFocus tracks own shares of the company. Dodge & Cox, with 3.48% of shares outstanding, has the largest position. Daniel Loeb (Trades, Portfolio) made the largest purchase in the fourth quarter, buying a 0.15% stake.
One of its investors, Keeley Funds, commented on the company in its first quarter letter last week:
"Cigna Corporation is a global health insurer that in 2018 acquired pharmacy benefit manager Express Scripts. Investors initially were not fans of the deal, but later came around. In the first quarter, however, shares were pressured after investors began questioning whether Cigna can execute on the deal's integration."
Cigna Corp. has a market cap of $56.19 billion; its shares were traded with a price-earnings ratio of 13.15 and price-sales ratio of 0.83. The trailing 12-month dividend yield of Cigna Corp. is 0.03%. The forward dividend yield of Cigna Corp. is 0.03%.
CVS Health Corp. (CVS)
Pharmacy company CVS Health Corp. moved into the health insurance business when it acquired Aetna in November, but a federal judge has said he will hear testimony next months from witnesses who oppose the deal as he reconsiders the merger that has already taken place. Its shares tumbled 18.91% year to date. After dipping 0.38% Monday, they closed trading at $52.43 per share.
Twenty-eight investors GuruFocus tracks own shares of CVS Health Corp. The largest position belongs to Larry Robbins (Trades, Portfolio), who owns 0.65% of outstanding shares. Chris Davis (Trades, Portfolio) established the largest new position in the fourth quarter, buying a 0.09% stake.
CVS Health Corp. has a market cap of $68.08 billion; its shares were traded with a price-sales ratio of 0.28. The trailing 12-month dividend yield of CVS Health Corp. is 3.80%. The forward dividend yield of CVS Health Corp. is 3.80%. CVS Health Corp. had an annual average earnings growth of 7.40% over the past 10 years.
Centene Corp. (CNC)
Centene, a provider of healthcare plans to U.S. government-sponsored health programs, traded 16.39% lower year to date. After losing 0.25% Monday, its share price closed at $48.08.
GuruFocus follows 12 investors in the stock. Lee Ainslie (Trades, Portfolio) owns the largest position in the company with 0.87% of outstanding shares. Only Jana Partners (Trades, Portfolio) started a position in the fourth quarter, acquiring a 0.19% stake.
Centene Corp. has a market cap of $19.87 billion; its shares traded with a price-earnings ratio of 20.65 and price-sales ratio of 0.32. Centene Corp. had an annual average earnings growth of 21.80% over the past 10 years. GuruFocus rated Centene Corp. the business predictability rank of 3-star.
Humana Inc. (HUM)
Shares of specialized Medicare and Medicaid provider Humana tumbled 16.39% year to date. Up 0.79% Monday, the stock closed at $242.60 per share.
Of investors GuruFocus tracks, 10 hold shares of Humana. Jim Simons (Trades, Portfolio) possesses the largest holding at 2.59% of its shares. Larry Robbins (Trades, Portfolio) started the largest position in the fourth quarter with 0.14% of shares.
Humana Inc. has a market cap of $32.91 billion; its shares were traded with a price-earnings ratio of 19.96 and price-sales ratio of 0.60. The trailing 12-month dividend yield of Humana Inc stocks is 0.82%. The forward dividend yield of Humana Inc stocks is 0.83%. Humana Inc had an annual average earnings growth of 9.80% over the past 10 years. GuruFocus rated Humana Inc the business predictability rank of 4.5-star.
Health Insurance Innovations Inc. (HIIQ)
Shares of Health Insurance Innovations, a multifaceted developer of affordable health plans, dropped 10.77% year to date. After gaining 4.19% Monday, they closed at $24.85.
Four investors GuruFocus tracks hold shares of the company. Jim Simons (Trades, Portfolio) has the largest position with a 4.25% stake. Paul Tudor Jones (Trades, Portfolio) started the largest position in the fourth quarter, buying 0.15% of outstanding shares.
Health Insurance Innovations Inc. has a market cap of $377.230 million; its shares were traded with a price-earnings ratio of 21.25 and price-sales ratio of 0.95.
See more health insurer stocks at the All-In-One screener here.
Read more here:
Yacktman Focused Fund Adds to Samsung and State Street, Axes Goldman Sachs
FPA Capital Fund Buys 5 Stocks in 1st Quarter
Lou Simpson Slashes Stakes in 2 Stocks
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 3 Warning Signs with WFC. Click here to check it out.
The intrinsic value of XLV
