Lagging Obamacare Sign-Up Is a Giant Pain for HMOs

Tickers in this article: AET CNC CNO HNT HUM UNH WCG WLP
NEW YORK (TheStreet) -- The big news overflowing today is that only 106,000 Americans signed up for Obamacare during the first month of open enrollment. Only about 27,000 of those sign-ups came through the HealthCare.gov Web site. And now, some Congressional Democrats want to change the Affordable Care Act to allow folks with current plans and doctors to keep them. This is after many insurers have canceled policies to comply with the new law.

The malaise of uncertainty is disconcerting to Aetna , Humana , WellPoint and other health care companies and their shareholders. No one can say now whether or not implementation of Obamacare will be delayed, but if it is, it's going to cost health maintenance companies money to re-establish canceled plans for perhaps another year.

On Oct. 24, I wrote Aetna, Humana, Other HMOs Slip on Web Site Glitches and since then two of the eight stocks declined by 9.8% and 12.0%. Only one performed well with a gain 9.5%. One of the stocks was downgraded to hold from buy according to www.ValuEngine.com.

The eight stocks in today's table are overvalued by 8.1% to 122.4%. All have gains over the last 12 months between 12.8% and 92.4%. Only one is below its 200-day simple moving average, which reflects the risk of reversion to the mean for the other seven stocks.

Reading the Table

OV/UN Valued: Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.

VE Rating: A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy.

Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage.

Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.