On Wednesday morning trade, Humana (HUM) may continue its slump from the day before. HUM stock lost 11.77% after lawmakers criticized CVS Health (CVS) and Cigna (CI) pharmacy benefit managers for anticompetitive practices.
Two Senate Democrats on the U.S. FTC are investigating co-manufacturing that PBMs introduced. They expressed concerns about Cigna and CVS Health. The news hurt HUM stock. UnitedHealth (UNH) did not change.
In the technology sector, Arm Holdings (ARM) dropped by 4.85% on Monday. Despite no news, sellers dumped the stock. Last week, Bloomberg reported that Intel (INTC) rejected Arm’s interest in buying its product division. Intel likely speculates that Arm trades at a substantial premium. While its assets are undervalued, it will not sell itself at a steep discount. The firm has a stable PC chip business that can easily grow in sales.
The small drop in ARM stock is not enough to offer bargain hunters a discount. The non-GAAP price-to-earnings is still over 100 times, compared to the sector median of 24 times. Similarly, Texas Instruments (TXN), Intel, and Qualcomm (QCOM) are richly valued.
Investors seeking value in chip stocks may consider Micron Technology (MU) instead.
