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Question:
I know they’re not direct competitors, but I’m looking at Allscripts Healthcare Solutions and WellPoint. I feel Allscripts has room to grow. I’d like to get your opinions on these two.
Answer:
We view Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX) as a one-trick-pony. The company is a provider of electronic hospital records, and unfortunately, that market is a crowded space. Allscripts is a small company, and it is competing with much larger software companies for market share. We do not recommend owning Allscripts, as it does not meet our criteria for investment.
WellPoint, Inc. (NYSE: WLP) is a larger, more established health benefit company that is in a good position with more people having access to health care. The company pays a 2% dividend and has a price-to-earnings-to-growth ratio that is less than 1. Of your two choices, WellPoint would be the better to own.
Question:
What do you think of FedEx? I have an opportunity to buy shares, and I wanted to know if this is one you’d OK to own.
Answer:
FedEx Corp. (NYSE: FDX) recently raised its prices 5% after its earnings miss; with fuel prices remaining the same, the company should do OK. Activity is slowing in emerging markets for FedEx; however, with healthy online shopping there is still a need for products to be shipped both domestically and internationally. FedEx is a function of the general economy, so as the economy is slow to grow, so will the company’s profits. While there is nothing wrong in owning FedEx, investors just need to remember that the company is cyclical, which may mean frequent ups and downs.
At Henssler Financial we believe you should Live Ready, which includes understanding the nature of your holdings. If you have questions regarding your investments, the experts at Henssler Financial will be glad to help. You may call us at 770-429-9166 or email at experts@henssler.com.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
