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.
Investors in AET should be cautious.