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.