AET was recommended by Dow Theory Forecasts at $42.40 in Investment Digest issue 710, dated January 4, 2012.
“We are removing Aetna, Inc. (AET, $50) from the Buy and Long-Term Buy lists. The shares have rallied 8% so far in 2013, approaching a five-year high and pushing the trailing P/E ratio to 10, a 7% premium to its five-year average. But Aetna’s Quadrix Overall rank has fallen to 74, reflecting weakness in operating momentum and earnings- estimate trends.
“The insurer posted mildly disappointing results for the December quarter, and execution risks, such as insurance exchanges, loom. First recommended on Dec. 23, 2011 at $43 per share, Aetna should be sold. Aetna is now rated B (average).”
MCK was recommended by Dow Theory Forecasts at $88.41 in Investment Digest issue 724, dated August 8, 2012.
“Drug and medical-supply distributor McKesson Corp. (MCK, $105) delivered somewhat disappointing December-quarter results, and its operating cash flow has declined year-over-year in each of the last three quarters. Despite that erosion of operating momentum, the shares have rallied 13% from December lows and no longer look cheap. McKesson trades at a premium to its five-year average valuation relative to earnings, sales, and operating cash flow, and the shares appear to have limited upside. Subscribers should sell to lock in profits on McKesson, which is now rated B (average).”
- Richard J. Moroney, CFA, Dow Theory Forecasts, February 18, 2013