This year, the group stock of Managed Care Organizations (MCO), that occupies the summit position in the US in health care arena, has managed to deliver profits for the investors. This group of stocks saw an increase of 24%. While its rival S&P Healthcare index only rose to about 9.4% and the S&P 500 witnessed an elevation of merely 1.2%. Undeniably, such a performance is appreciable and its maintenance is pretty difficult. However, analysts at UBS have predicted that Managed care organizations (MCO) have much larger prospects in future.
There were two items in this group of stocks which were given notable attention by UBS. Both these items are pretty active when it comes to mergers and acquisitions. This report given by UBS brought forward 4 stocks which ought to be bought. These are Aetna Inc. (NYSE:AET), Anthem Inc. (NYSE:ANTM), Cigna Corp. (NYSE:CI) and UnitedHealth Group Inc. (NYSE:UNH) respectively.
- Aetna Inc. (NYSE:AET)
Aetna Inc. (NYSE:AET) is a leading company that provides a diverse array of health care benefits. Almost 44 million people are benefiting from the company’s services. The range of products are services it offers is pretty vast. It includes both voluntary and traditional health-insurance products which are directly related to consumers. Moreover, these health insurance products are conjugated with other services as well. For instance, medical, dental, pharmaceutical and other behavioral health benefits etc.
- Anthem Inc. (NYSE:ANTM)
Anthem Inc. (NYSE:ANTM) also provides top quality services and products, along with making sure that all health care benefits are brought within easy access of its members. Anthem Inc.’s (NYSE:ANTM) affiliated companies are serving nearly 68 million people. Furthermore, its health plans covers almost 37 million people. In accordance with these figures, a continued progression and growth doesn’t seem unlikely.
The financial reports posted by the company delineate strong earnings for the fourth quarter of fiscal year 2014. These reports imply that there are bright and positive prospects for the company in fiscal year 2015 as well. Furthermore, the company also acquired Simply Healthcare Holdings recently. This acquisition has gone a long way in elevating the company’s share prices.
- Cigna Corp. (NYSE:CI)
Cigna Corp (NYSE:CI) has been delivering health insurance related products and services, not just in US alone, but across the globe. The company owns various subsidiaries which are responsible for the exclusive provision of these products and services. The company has approximately 86 million customers present all over the world. Furthermore, its sales network is spread over 30 countries. The UBS price target for the company has gone up to $149. While previously, it stood at $140.
- UnitedHealth Group Inc. (NYSE:UNH)
UnitedHealth Group Inc. (NYSE:UNH) provides an entire range of services to its individual customers and employers. 800,000 doctors and care professionals are working under its contracts. Furthermore, almost 6000 hospitals and other medical facilities are also covered by the company. UnitedHealth Group Inc. (NYSE:UNH) owns two platforms which are titled as UnitedHealthcare and Optum respectively. Through these platforms, it provides its entire array of health care products and services to its customers.
Its financial record of the last year in incredible and similar results are expected in the financial report of the coming month as well.