eHealth | EHTH | Long at $4.22eHealth NASDAQ:EHTH , the largest online private health insurance marketplace, may be undervalued. The book value is listed around $19 a share and it has a debt-to-equity of 0.07x (healthy), a quick ratio of 2.5 (strong liquidity, can cover liabilities), growing revenue since 2021 (over $500M in 2024), and insiders have recently bought shares/awarded options. However, profitability is still a concern, but the company is expected to be profitable by 2026. With the US's aging population and the need for affordable healthcare coverage, eHealth *may* standout as a major insurance marketplace... but time will tell.
From a technical analysis perspective, the stock price is near the bottom of its historical simple moving average. I do not doubt, however, that the stock may slip to cover the small price gap between $3.09 and $3.23 (which will be another entry point if fundamentals do not change). This stock may trade sideways for some time. But it has a 27M float and as we saw in 2014 and 2020, it can REALLY get going if buyers see the opportunity...
Thus, at $4.22, NASDAQ:EHTH is in a personal buy zone with more opportunity potentially near $3 in the future.
Targets:
$6.00 (+42.2%)
$8.00 (+89.6%)
