Bright Health Group Inc

Bright Health Group Inc (NYSE: BHG) is a health insurance company having two reportable business segments - NeueHealth and Bright HealthCare.

Investment Rationale – WATCH at USD 9.89

• According to the consensus estimates, the Company will remain loss-making for four more years (FY21 to FY24).
• The stock price jumped approximately 18% in a single day, boosted by the media news that the former General Electric CEO had purchased a substantial stake in the Company.
• From a technical standpoint, the stock price is trading lower than the 20-days exponential moving average of USD 10.67, indicating a downward momentum in the stock price.
• The stock is highly volatile, as it plunged by approximately 40% from the day of its listing (24 June 2021).
• BHG had widened the net loss during FY20 as compared to FY19.

Share Price Chart (since 24 June 2021)

(Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak profitability levels and unfavourable technical indicators, we have given a “WATCH” recommendation on Bright Health Group Inc at the closing market price of USD 9.89 (as of 16 August 2021).

Kemper Corporation

Kemper Corporation (NYSE: KMPR) is a diversified insurance company that deals with life and health insurance.

Investment Rationale – WATCH at USD 66.40

• The Company had witnessed an adverse turnaround and reported a net loss during Q2 FY21, while it had reported a significant profit during Q2 FY20.
• On the leverage front, KMPR’s debt to equity ratio of 0.26x remained higher than the industry median of 0.24x during Q2 FY21.
• The consensus estimates had indicated positive profitability numbers during Q2 FY21, but the earnings per share turned out to be in negative territory.
• From a technical standpoint, the 20-day exponential moving average of USD 67.06 is indicating a correction in the stock price.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the unfavourable technical indicator and weak profitability levels during Q2 FY21, we have given a “WATCH” recommendation on Kemper Corporation at the closing market price of USD 66.40 (as on 16 August 2021).

Hims & Hers Health Inc

Hims & Hers Health Inc (NYSE: HIMS) is an American telehealth company focused on the sale of prescription and over-the-counter drugs online.

Investment Rationale – WATCH at USD 7.47

• The Return on Equity and Return on Assets remained in the negative territory during Q2 FY21.
• In terms of a technical indicator, the current price of HIMS is sustaining lower than the 20-days exponential moving average of USD 8.40, indicating a correction in the stock price.
• Despite showing a significant rise in Q2 FY21 revenue, the Company had reported a wider net loss during the period when compared with Q2 FY20.
• Moreover, all profitability metrics remained in the negative territory during Q2 FY21, while the respective industry medians remained positive.

One Year Share Price Chart

(Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the lower profitability levels as compared to the industry and unfavourable technical indicators, we have given a “WATCH” recommendation on Hims & Hers Health Inc at the closing market price of USD 7.47 (as on 16 August 2021).

Flux Power Holdings Inc

Flux Power Holdings Inc (NYSE: FLUX) is focused on the sale of rechargeable advanced lithium-ion batteries for industrial uses.

Investment Rationale – WATCH at USD 8.70

• All key profitability metrics remained in the negative territory from the last five quarters (Q3 FY20 to Q3 FY21), while the respective industry medians were positive.
• From a technical standpoint, the 20 days exponential moving average of USD 9.62 is indicating a correction in the stock price.
• The slowdown in the travel industry had resulted in reduced demand levels for the Company’s products.
• On the liquidity front, the current ratio of FLUX remained lower than the industry median of 2.22x during Q3 FY21.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak fundamentals and slowdown in the travel industry, we have given a “WATCH” recommendation on Flux Power Holdings Inc at the closing market price of USD 8.70 (as on 16 August 2021).

*The reference data in this report has been partly sourced from REFINITIV.

*Dividend Yield may vary as per the stock price movement.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.