The selling pressure regarding UnitedHealth Group Inc. shares could subside shortly. In fact, the support area that is currently being tested around 476.24 USD has come into play and could, at least in the short term, keep the downside pressure at bay.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Analysts' price targets are all relatively close, reflecting good visibility on the company's valuation.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● The overall consensus opinion of analysts has deteriorated sharply over the past four months.
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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.
