Based on the aggregated intelligence of 120,000 investors participating in Motley Fool CAPS, the Fool's free investing community, health insurer Coventry Health Care (NYSE:CVH) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Coventry Health Care's business, and see what CAPS investors are saying about the stock right now.

Coventry facts

Headquarters (Founded)

Bethesda, Md. (1986)

Market Cap

$1.95 billion


Health Care Plans

TTM Revenue

$11.7 billion


CEO Dale Wolf (since 2005)

CFO Shawn Guertin (since 2005)

Return on Equity (average last three years)



WellPoint (NYSE:WLP),

Aetna (NYSE:AET)

CAPS members bullish on CVH also bullish on

UnitedHealth Group (NYSE:UNH),

Quality Systems (NASDAQ:QSII)

CAPS members bearish on CVH also bearish on

Wachovia (NYSE:WB),

Merrill Lynch (NYSE:MER)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 95% of the 219 All-Star members who have rated Coventry believe the stock will outperform the S&P 500 going forward. These bulls include dexion10 and ebarrett4, both of whom are ranked in the top 25% of our community.

Just yesterday, dexion10 noted that Coventry "is trading at 0.5x book value. I've followed this conservative company since 2005 and I believe they have assets and an IT platform that are worth at least 1x book to a strategic buyer."

An earlier pitch from ebarrett4 shares that contrarian attitude, citing last week's plunge as an attractive point of entry:

Added on 10/21/08, right before the 50% drop. Smarts. By my count, the current stock price is trading as if all future earnings estimates will be cut by 50% over the next 5-6 quarters. Based on the 3Q results, that isn't beyond the realm of possibility, but probably very unlikely. And managed health care is not going anywhere and will continue to see increased customers as the U.S. population ages. An excellent long-term play, especially if you're in after this drop!

What do you think about Coventry, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Coventry Health Care, UnitedHealth Group, and Quality Systems are Motley Fool Stock Advisor picks. UnitedHealth Group is also an Inside Value selection, as is WellPoint. The Fool owns shares of UnitedHealth Group. The Fool's disclosure policy always gets a perfect score.