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Byline: Monika Tjia
Rightchoice Managed Care is working on the right side of a 10-week base. Last week, the stock found support at its 200-day moving average. It stands 12% off its high.
Its Relative Strength line is up and at new high ground, a good sign.
The St. Louis-based firm provides health care benefits, focusing on Missouri residents. Earlier this month, Legg Mason started coverage of Rightchoice with a strong buy rating.
Earnings growth has been 32% or higher in the past 10 quarters. Sales growth has slowed in the past two quarters, from 17% to 13% to 11%. But in the latest quarter its after-tax profit margin hit 5.3%, its best showing in at least 13 quarters.
Rightchoice belongs to the Medical-HMO group, which in the past nine weeks has improved to 36th from ...