Invest Intelligence When It Realy Matters
Debt Ceiling Resolution Smashes HMOs and Healthcare REITs, While Boosting other REITs
On Friday, Amerigroup (AGP) reported disappointing earnings partly due to an account error. However, after adjusting for this issue, earnings still came in considerably lower than consensus. The combined bad news sent shares tumbling by around 40%.
Most HMOs with a good deal of Medicaid exposure also sold off (CNC, WCG, MOH). In addition, even the larger more diversified HMOs showed weakness (UNH, AET, CI, WLP). Weakness in the HMO sector continues today. Despite beating earnings estimates nicely, even Humana (HUM) is showing weakness today.