HUM and CI: Stock picker’s at Goldman Sachs like Humana better than Cigna

Goldman Sachs’ posted a note on Barron’s web site that says the firm’s stock pickers like Humana (HUM) better than Cigna (CI), but it still has buy recommendations on both stocks.

The firm’s stock research has convinced its analysts that, “Humana’s earnings are primarily driven by Medicare Advantage, where fundamentals remain strong and should drive solid second-quarter earnings as well as a solid outlook for next year. We’ve gained greater confidence that the earnings hit to 2008 is behind us and contained to the Medicare drug-plan business, a key positive if it proves out since Medicare drug-plan benefits are fully reset on an annual basis, which could drive $1.00 upside to our current 2009 EPS estimate of $5.10.”

Daily charts for HUM and CI and their close competitors are here.

Stock market timers and technical analysts will be interested in these point and figure charts. They show that HUM, WLP, HNT and CVH have bullish price objectives, which should be treated as guides, not predictions. CI and UNH have bearish price objectives.

Full Disclosure: I don’t have positions in any of these stocks.

For educational purposes only. Investigate stocks on Reuters.com, Yahoo.com and Google.com. Also, search the web for information. And read your local papers, which cover companies based in your state and area as well as anyone. That gives local investors an edge, if they know what to look for.

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