Cautious on Aetna Inc (NYSE:AET)

Stock Traders daily has become concerned about the valuation level for Aetna Inc (NYSE:AET).  Earnings Growth Rates have been declining since Q2 2014 and in Calendar 2015 EPS growth is expected to only be 6.37%.  Still, the stock is trading with a PE multiple over 18x.  Our opinion is that this is a richly priced stock @ $128.

In addition, our technical observations suggest that AET is testing or has just tested a level of longer term resistance.  This compounds the fundamental warning.

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Investors in AET should be cautious.

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