In a new report, Leerink analyst Ana Gupte offered one possible source of value following the recent market selloff: managed care stocks. Gupte sees further upside from many names in the space following big Q2 earnings beats.

‘Beats And Raises’

All year, managed care stocks have been consistently beating earnings expectations and raising guidance, and Q2 was no exception. By Leerink’s count, 9 out of 11 companies beat consensus earnings expectations, and 7 out of 10 that issue guidance raised their targets.

Gupte notes that Cigna Corp CI 0.55%, Anthem Inc ANTM and Aetna Inc AET 2.04% produced particularly strong results. WellCare Health Plans Inc WCG 3.51% and Molina Healthcare Inc MOH 2.05% were two leaders among small caps in the quarter.

The Numbers

Gupte sees…

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