UnitedHealth Group Inc.: The revival in interest should continue
Published on 10/11/2019
at 08:23 pm IST
Share
BUY
Target price hit
Entry price
Target
Stop-loss
Potential
$225.65
$243.2
$215.26
+7.78%
UnitedHealth Group shares have recently benefited from a buyers' comeback, which was accompanied by a rise in volumes and volatility. This situation suggests a continuation of the upward dynamic.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The share is getting closer to its long-term support in weekly data, at USD 215.26, which offers good timing for buyers.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● The group usually releases upbeat results with huge surprise rates.
● As regards fundamentals, the enterprise value to sales ratio is at 0.98 for the current period. Therefore, the company is undervalued.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● Below the resistance at 247.63 USD, the stock shows a negative configuration when looking looking at the weekly chart.
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UnitedHealth Group Inc. is one of the leading American suppliers of healthcare products and services. Income breaks down by activity as follows:
- health insurance (53.7%; UnitedHealthcare);
- prescription insurance plan management services (42.9%; Optum Health and Optum Rx): administrative management (reimbursement management, patient claim processing, etc.), drug distribution, decision-making information, sales of medical information management services, etc.;
- provision of computer services (3.4%; Optum Insight): consulting, development, and integration of solutions for transaction management, healthcare plan management, data processing, etc.
This super rating is the result of a weighted average of the rankings based on the following ratings: Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite) and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be carried out. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of rankings based on the following ratings: Returns (Composite), Profitability (Composite) and Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully read the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
