Health Net’s (HNT) fourth quarter earnings per share came in at $0.69, marginally above the Zacks Consensus Estimate of $0.67 and the year-ago earnings of $0.61. Following the sale of its Northeast segment to UnitedHealth, Health Net will be able to concentrate on its core Western markets.
We are also encouraged by its recent partnership program with Stanford University to provide health care coverage to its students. While we remain concerned about the decline in membership, we believe a gradual improvement of the U.S. economy should improve its membership status.
Moreover, a strong balance sheet should enable it to tackle the current scenario. Given these factors, we upgrade the stock to Outperform.Zacks Investment Research
