Health Net, Inc. (HNT)

<b>Health Net&#39;s</b> (<a href=http://www.zacks.com/stock/quote/hnt>HNT</a>) fourth quarter earnings per share came in at $0.69, marginally above the Zacks Consensus Estimate of $0.67 and the year-ago earnings of $0.61. Following the sale of its Northeast segment to UnitedHealth, Health Net will be able to concentrate on its core Western markets. <p> We are also encouraged by its recent partnership program with Stanford University to provide health care coverage to its students. While we remain concerned about the decline in membership, we believe a gradual improvement of the U.S. economy should improve its membership status. <p> Moreover, a strong balance sheet should enable it to tackle the current scenario. Given these factors, we upgrade the stock to Outperform.

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