WellPoint (WLP) NewsBite - WLP Posts Stronger-Than-Expected Profit

Posted on Wednesday, July 23, 2008 10:38 AM

WellPoint Inc. (WLP) opened at 52.28. So far today, the stock has hit a low of 52.26 and a high of 53.78. WLP is now trading at 53.51, up 4.76 (9.10%). The stock hit its 52 week high of 90.00 in January and set its 52 week low of 43.02 in March. WLP climbed during the second half of 2007, but has been showing signs of weakness this year. WellPoint reported this morning a 10% drop in second-quarter profit on higher medical costs. The company posted earnings of $750.5 million, or $1.44 per share on sales of $15.67 billion, while analysts expected profit of $1.36 per share on revenue of $15.61 billion. WellPoint also narrowed its outlook for the full year. Technical indicators for the stock are bearish and steady while S&P gives WLP a negative 2 STARS (out of 5) sell rating. If you’re looking for a hedged play on this stock, consider a September bull-put credit spread below the $45 range. WLP stock could fall up to 15.9% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]