4 HMO stocks to watch

As legislative and operating trends in healthcare improve in 2021, here are four HMO stocks to keep tabs on, according to Nasdaq:

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1. UnitedHealth Group: The payer’s numerous acquisitions and renewed agreements bode well for its growth profile. Earnings increased by 20.21 percent in the last four quarters, on average. The expected long-term earnings growth rate stands at 12.8 percent. 

2. Anthem: Acquisitions and collaborations have facilitated increased Medicare Advantage enrollment within the company. Earnings increased by 2.47 percent in the last four quarters on average, and its expected long-term earnings growth rate stands at 12.7 percent, according to Nasdaq.

3. Cigna: Nasdaq said the payer’s acquisition of Express Scripts, divesting its Group Life and Disability insurance business, and expansion of international business will be helpful in the long term. The company’s earnings increased by 5.43 percent in the last four quarters on average, while the expected long-term earnings growth rate sits at 11.5 percent.

4. Humana: The company has been performing well for several quarters, delivering an average 9.42 percent earnings increase in the last four quarters. Its expected long-term growth rate stands at 13.2 percent. 

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