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Will Aetna and Anthem Benefit From Huge Acquisitions?


NEW YORK (TheStreet) -- The CEOs of Anthem Inc. (ANTM - Get Report) and Aetna Inc. (AET - Get Report) testified before a congressional subcommittee Tuesday, to defend recent deals the companies made.

Aetna is targeting Humana Inc. (HUM - Get Report) for roughly $34 billion. Anthem is pursuing an acquisition of Cigna Corp. (CI - Get Report) for nearly $50 billion.

The Senate Judiciary antitrust subcommittee is concerned that the outcome of these deals would lead to the top five health insurers being cut down to just three companies. The other large health insurer remaining would be UnitedHealth Group Inc. (UNH - Get Report) .

Here are the recommendations for Anthem and Aetna, according to TheStreet Ratings, TheStreet's proprietary ratings tool.

TheStreet Ratings projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Based on 32 major data points, TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

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