Health insurers pummeled on Wellpoint warning

Wellpoint (WLP) suffered a 28% haircut today and dragged down the entire sector after slashing 2008 earnings estimates yesterday to a range of $5.76 - $6.01, versus consensus of $6.41/share.

AET -8.3%
CI -9.8%
UNH -15.2%
WCG -16.0%
HUM -24.4%
WLP -28.3%

The punishment these names endured seems overzealous. FastMoney's Guy Adami has been a Humana proponent and came to the company's defense today. HUM in fact just last month raised guidance for 2008. A bounce is highly likely from this selloff.

Humana Reports Fourth Quarter and Full Year 2007 Financial Results
Monday February 4, 6:00 am ET
-- 2007 EPS of $4.91, ahead of company expectations
-- Raising projected 2008 EPS to a range of $5.35 to $5.55

http://biz.yahoo.com/bw/080204/20080204005451.html?.v=1