P/E Ratio Insights for Cigna benzinga.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from benzinga.com Daily Mail and Mail on Sunday newspapers.
Fundamental Context
The CFRA Focus ETF for May is Health Care Select Sector SPDR (XLV). In rating equity ETFs, CFRA combines fund-level attributes, including performance and costs, with holdings-level risk and reward analysis to provide a second opinion on what is inside the fund. XLV is appealing to CFRA as we look forward. Sam Stovall, CFRA’s Chief Investment Strategist, noted that the S&P 500 Index has typically struggled during the seasonally weak May-October period of the year, rising only 2.2% on average since 1990. However, the S&P 500 Health Care sector was the best performing sector gaining 4.8%.
The S&P 500 Health Care sector, which XLV seeks to replicate is diversified across key health care industries. Health Care Equipment & Supplies (29% of assets), Pharmaceuticals (27%), Health Care Providers & Services (20%) are the largest, but the ETF has meaningful exposure to Biotechnology (14%) and Life Sciences Tools & Services (9%) as well. The ETF is market-cap weighted wi
In the current market session,
Universal Health Services Inc. (NYSE:UHS) is trading at $144.00, after a 1.54% drop. However, over the past month, the stock went up by 5.73%, and in the past year, by 30.28%. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is not performing up to par in the current session.
Assuming that all other factors are held constant, this could present itself as an opportunity for shareholders trying to capitalize on the higher share price. The stock is currently under from its 52 week high by 4.38%.
The P/E ratio measures the current share price to the company s EPS. It is used by long-term investors to analyze the company s current performance against its past earnings, historical data and aggregate market data for the industry or the indices, such as S&P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. I