Tuesday 22 July 2014

Aetna and the fundamental points one should know, when investing.



Stock is a security that provides the holder the right on the assets and earning of the organization. Investing can be an easy and secure way of generating consistent and growing income. By gaining knowledge of the market trends and strong knowledge of stocks which are going to raise in the future, huge profits can be generated. There are many examples of people who have gained huge profits through investing in stocks. Investing in stock can diversify the source of income and also creates a separate and secure income. The rate of growth in stock income is far greater than the rate of interest paid by the banks. So rather than putting the excess money in the bank, investing in stock can be more favorable.
But before investing in stock a complete screening of the best available stock should be made. While investing in stocks first we need to assume the risk for investing in the organization shares. Everyone wants to be secure about the future, especially now people have become more aware about the health concerns. So health related insurance has gained pace in last few years. Health insurance sector is bound to prosper in the times to come. So, the profits generated
Aetna Inc. founded in 1853 is working as a health care benefits providing company in Harford England. It works in three major sections: Health care, Group insurance and Large case pensions.
The health care segment provides benefits regarding maintenance of physical and mental health. This segment also provides medical care and products required for health care. Group insurance segment deals in providing large number of insurance to a group, a company or medium size enterprises as well as individuals. The large case pension section is to provide after job/ retirement benefits to the employees and workers. The customers of this section include employer groups, college students and workers.
Aetna with its 22.719 medical members, 616000 doctors and specialist and more than5400 hospitals stands out as one of the very best in its class and no doubt it is providing best services. The aforementioned fact being the beneficiary as far as Aetna stock’s worth is concerned.
With market capita 26.58 Billion, enterprise value of 31.49 Billion Aetnastock is on its way to the excellence that it has always insured. But company not just only contains profit to its self but also divides it to its stakeholders too and most importantly to potential Aetna stock holders as the dividend yield for the last five year for the company shareholders is 0.90 % and earning per share for the fiscal year 5.33.
Aetna has earnings growth 10.81 % for last year, 10.82% for this year and estimated and evaluated growth rate of 11% for the next five years. The stock rate for the company today is 74.36 $ (16-05-2014) and is estimated to rise up till 100 $.  
Moreover, Aetna has had its issue with Obama Care, causing its stock price to plummet for a moment in time, however with the recent crash of the healthcare.gov website, people started to doubt the credentials of Obama Care and have quickly turned towards Aetna, an issue all potential Aetna stock shareholders must keep in consideration.

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