WellCare, 15 pct below 52-week high, has room to grow - Barron's
Feb 24 (Reuters) - Shares of WellCare Health Plans Inc have room to grow as government Medicare and Medicaid insurance plans expand, according to Barron's.
The company is poised for strong growth as state and federal entities outsource more contracts to the private sector, Barron's said. An aging U.S. population and the extension of Medicaidcoverage to more people in most states make further expansion of the programs a certainty, Barron's said
Those factors make the stock attractive as a long-term investment, Barron's said. The stock added 0.8 percent to $276.26 on Friday, but WellCare is 15 percent below its 52-week high in October.
The stock remains about 15 percent below its five-year average forward price/earnings ratio, said Barron's.