Good Execution Continuing To Boost UnitedHealth
- UnitedHealth continues to see declining commercial membership, but overall revenue and margin performance was a little better than expected.
- Optum remains a key asset for the company, particularly as its risk-pricing capabilities should serve the company well as its expands its involvement in state exchanges.
- I don't believe UnitedHealth shares are strikingly cheap, but the company has a history of outperforming guidance and offers above-average quality.
- UnitedHealth hit a new lifetime high, and other health insurers are also doing well.
- The ACA brings in new money and gives insurers control over spending.
- Health insurance investors have doubled their money in the last 3 years, and are set for more gains.
UnitedHealth: 15% Dividend Growth And Strong Earnings Momentum
- UNH has become serious in recent years about returning cash to shareholders.
- The stock has also shown very strong gains on a terrific industry backdrop and earnings growth.
- UNH is fairly valued at the moment but its momentum and dividend growth make it compelling nonetheless.
- UnitedHealth Group combines a very attractive valuation with strong price momentum and financial efficiency.
- The Health Care Providers industry group is poised to lead its sector, as they are much more modestly valued and have strong momentum relative to its sector.
- We maintain a $115.69 12-month price target on the stock, which represents a 12.8% premium on the current price.
- Aetna is another strong pick in this industry group, and we maintain a $104 price target on the stock. We will be releasing our report on them very soon.
Shares Of UnitedHealth Group No Longer Undervalued
- After gaining nearly 30% over the last year, shares of UnitedHealth Group now trade at a historically high forward price to earnings multiple.
- The company operates in a non-cyclical industry, has exhibited a track record of consistent earnings growth, possesses a solid balance sheet and has increased its dividend aggressively.
- However, despite all of these positive fundamental attributes, the DRAG model suggests that no significant upside remains for this stock over the next 12 months at its current valuation.
United Health Group: Still Undervalued And 10%+ CAGR Ahead
- United Health Group is the largest U.S. health care corporation with a market cap of $93 billion.
- The company has grown its dividend payments 30%+ per year over the last 3 years.
- Increasing health care complexity is driving growth for United Health Group.
- UnitedHealth Group Inc. posted a strong financial performance for the 3rd quarter of 2014.
- Dividend investors should definitely take note of the company’s strong dividend growth prospects.
- Growth was not one-dimensional; it was spread across UnitedHealth’s multiple business divisions and service-provision segments.
- UnitedHealth managed to exceed expectations of analysts this quarter, future forecasts are more favorable.
- Share prices look all but set to reach a 6-year high point.
UnitedHealth Has A 104% 5-Yr Dividend Growth Rate, But Is It A Buy Right Now?
- I believe the stock to be fairly priced based on 2015 earnings estimates.
- The stock did jump up quite a bit in a short amount of time after the most recent earnings announcement which made it fairly priced.
- The dividend is small for right now but has quite a bit of room to grow.
- UNH is the largest health insurance provider in the United States, covering 85 million people.
- While not risk-free, UNH appears undervalued and is building an attractive dividend growth streak.
- I believe UNH is an attractive investment.
The Technical And Fundamental Differences For United HealthCare Group
- UNH is questionable on a fundamental basis.
- Valuations may become a major concern soon.
- But the stock just tested longer term support.
UnitedHealth: Fresh Highs As Cost Concerns Fade Away
- UnitedHealth posts solid results and issues a comforting outlook.
- The guidance for lower medical costs is welcomed by investors who feared for cost increases.
- Shares offer relatively good appeal, as I remain cautious on the back of an uncertain operating environment.
Why UnitedHealth Stock Is A Good Investment Opportunity
- UnitedHealth will benefit from the high growth in the Medicare market in the coming years, and from its fast-growing Optum segment.
- UnitedHealth has shown a significant earnings per share surprise in each one of the last three-quarters, and it raised its forecast for the year.
- UnitedHealth is generating strong cash flow, and it returns value to its shareholders by stock buybacks and increasing dividend payments.
- For each S&P 500 industry sector, I will be taking a look at available companies to help determine the best stocks for income investors.
- In determining the best stocks per industry, I will be examining both the dividend growth and dividend yields of the stocks.
- Out of this group of Managed Health Care stocks, I believe that Aetna and UnitedHealth Group are currently the best buys for long-term income investors.
Valuation Risk May Increase For UnitedHealth Group
- UNH trades at a high P/E compared to growth.
- Yearly growth rates are slightly more than 3%.
- If they meet estimates that will likely get lower.
UnitedHealth - Jefferies Is Right, Appeal Is Limited At These Levels
- UnitedHealth Group ¨receives¨ a downgrade from analysts at Jefferies.
- Multiple expansion and inferior growth expectations are reasons to be cautious.
- I totally agree with analysts: after the huge momentum in recent years, appeal is limited.
UnitedHealth Group: A Stock For Dividend Lovers
- UnitedHealth Group announced enviable dividends and share buybacks for its investors.
- The group’s dividend history has remained robust and attractive since 2010.
- This article will assess the company’s ability to sustain enormous dividend payouts in the future.
- Healthcare giant announces massive 34% dividend increase.
- Low payout ratio and steady earnings should comfort dividend growth investors about more increases.
- This stock has current yield, dividend growth, and capital appreciation potential.
Is It A Healthy Move To Hold On To UnitedHealth Group?
- Dividends have grown significantly in recent years.
- Future economic and political changes may affect dividends going forward.
- Given the uncertainties, I will not be making any immediate changes to my holdings.
UnitedHealth Group: 4 Different Insiders Have Sold Shares During The Last 30 Days
- Four insiders sold UnitedHealth Group stock within one month.
- The stock was not purchased by any insiders in the month of intensive selling.
- Three of these four insiders decreased their holdings by more than 10%.
Wed, Jan. 21, 7:21 AM
- UnitedHealth Group (NYSE:UNH) Q4 results ($M): Total Revenues: 33,433 (+7.4%), Premiums: 29,375 (+6.0%), Services: 2,765 (17.1%), Products: 1,127 (+30.3%), Investment & Other: 166 (-9.8%).
- Employer & Individual: 10,721 (-6.1%); Medicare & Retirement: 11,494 (+5.0%); Community & State: 6,517 (+36.7%); International: 1,702 (+3.4%); Total UNH: 30,434 (+5.7%); Optum: 12,876 (+23.4%); Eliminations: -9,877 (+21.8%).
- OptumHealth: 3,017 (+20.3%), OptumInsight: 1,487 (+26.2%), OptumRx: 8,507 (+23.9%), Optum Eliminations: -135 (+15.4%).
- Medical Costs: 23,434 (+4.1%); Operating Costs: 5,845 (+15.7%); COGS: 1,008 (+33.2%); Dep & Amort: 381 (+8.9%); Net Income: 1,510 (+5.8%); CP Ops: 1,021 (-85.4%), Quick Assets: 9,236 (+0.2%).
- Operating Profit: 2,765 (+12.8%); Operating Earnings Yield: 8.3% (+5.0%); Net Earnings Yield: 4.5% (-1.5%).
- 2015 Guidance: Revenues: $140.5B - 141.5B; EPS: $6.00 - 6.25; CF Ops: $8.0B - 8.4B.
Wed, Jan. 21, 6:04 AM| Comment!
Tue, Jan. 20, 5:30 PM
Thu, Jan. 1, 2:19 AM
- Dow: INTC +41%; UNH +35%; HD +28%; CSCO +25%; MSFT +25%.
- S&P 500: LUV +125%; EA +106%; EW +95%; AGN +92%; AVGO +91%.
- Nasdaq: AAL +112%; EA +106%; AVGO +91%; GMCR +78%; ILMN +68%.
Dec. 26, 2014, 12:48 PM
Dec. 3, 2014, 11:50 AM
- Key data from yesterday's UnitedHealth Group (UNH +0.7%) event:
- 2015 Guidance ($B): Total Revenues: $140.5 - 141.5, UnitedHealthcare: 127.0 - 128.0, Optum: 52.3 - 53.3; Operating Earnings: 10.8 - 11.2; Operating Cost Ratio: 17.0% +/- 30 bps; Net Income: 5.7 - 6.0; After-tax profit: 3.8 - 4.0; CF Ops: 8.0 - 8.4; EPS: $6.00 - 6.25.
- Commercial Care Ratio: 80.0% =/- 50bps; UnitedHealth Group Consolidated Medical Care Ratio: 80.8% +/- 50 bps.
- Total UnitedHealthcare - Medical Enrollment (000s): 45,340 - 46,190 vs. 44,840 in 2014; Medicare Part D Stand-Alone: 5,385 - 5,435 vs. 5,185 in 2014.
Dec. 1, 2014, 4:28 PM
- UnitedHealth Group (NYSE:UNH) holds its annual Investor Conference tomorrow in New York City beginning at 8:00 am ET. Management will discuss the company's performance and 2015 outlook.
- The company affirms its previous 2014 EPS guidance of $5.60 - 5.65. Its 2015 outlook includes EPS of $6.00 - 6.25 on revenues of $140.5B - 141.5B.
- A replay of the conference will be on the company's website through January 2, 2015.
Nov. 12, 2014, 10:22 AM
- UnitedHealth Group (UNH -0.9%) creates an Office of the Chief Executive comprised of CEO Stephen J. Hemsley, Vice-Chairman of UnitedHealth Group Larry C. Renfro, President, UnitedHealth Group David S. Wichmann, EVP, Chief Legal Officer Marianne Short and EVP, Human Capital Ellen Wilson.
- Mr. Renfro will remain CEO of Optum and will assume additional UnitedHealth Group oversight responsibilities for all enterprise strategic relationships, key client relationships and company-wide business growth efforts.
- Optum COO and Optum Rx CEO Dirk McMahon promoted to EVP, Enterprise Operations of UnitedHealth Group reporting to Mr. Wichmann.
- EVP, UnitedHealth Group and CEO, UnitedHealthcare Gail K. Boudreaux leaves her position.
Nov. 7, 2014, 7:17 AM
Oct. 22, 2014, 2:44 PM
- Crude inventories rose 7.1M barrels for the week ended October 17, according to the EIA, vs. expectations for a 2.7M jump. Helping boost inventories were fewer refinery runs - down 113K barrels per day with utilization rates dropping 140 basis points to 86.7%. In the Midwest, utilization rates are the lowest for this point in the year since 2010.
- WTI crude oil last week briefly dropped under $80 per barrel for the first time since the summer of 2012, and it's testing that level again today, -2.9% to $80.36. USO -2.4%
- Gasoline (UGA -2.2%) stockpiles fell 1.3M barrels vs. expectations for a 1M barrel drop, and distillates (UNH -0.8%) rose 1M barrels vs. expectations for a 1.3M barrel decline.
- ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, CRUD, USL, UWTI, DNO, DWTI, SZO, OLO, OLEM, TWTI
Oct. 16, 2014, 7:45 AM
- UnitedHealth Group (NYSE:UNH) Q3 results: Total Revenues: $32,759M (+7.0%); Employer & Individual: $10,610M (-5.5%); Medicare & Retirement: $11,477M (+3.9%); Community & State: $6,131M (+33.8%); International: $1,821M (+18.9%).
- Medical Costs: $23,092M (+4.8%); Operating Costs: $5,436M (+11.6%); COGS: $955M (+30.6%); Net Income: $1,602M (+2.0%); EPS: $1.63 (+6.5%); CF Ops: $3,200M (-46.0%).
- Gross Profit: $9,667M (+12.7%); COGS: 70.5% (-2.1%); Gross Margin: 29.5% (+5.3%); Operating Profit: $2,903M (+10.3%); Operating Earnings Yield: 8.9% (+3.1%); Net Earnings Yield: 4.9% (-4.6%).
- Optum: Total Revenues: $11,986M (+21.4%); OptumHealth: $2,849M (+14.2%); OptumInsight: $1,250M (+4.0%); OptumRx: $8,011M (+27.3%).
- 2014 Guidance unchanged.
Oct. 16, 2014, 6:05 AM| Comment!
Oct. 15, 2014, 5:30 PM
Oct. 14, 2014, 3:31 PM
- Global growth, foreign-exchange, oil, and small caps are the subject of every client inquiry, says David Kostin. His team's recommendation: Buy "American exceptionalism."
- In Kostin's view, U.S. economy and corporate fundamentals are still strong, with economic growth expected by Goldman economists to be 3.2% next year, the fastest expansion since 2005. Europe is expected to grow just 1%.
- What his team likes are those stocks of companies which have a high proportion of domestic sales, plus sectors like Consumer Staples (XLP -0.1%) and Discretionary (XLY +0.7%) which stand to benefit from lower oil prices (plunging again today).
- As for small caps (IWM +0.9%), Kostin is wary, noting downward earnings revisions have boosted small cap P/E ratios even as prices have declined.
- The list of S&P 500 names capturing two or more of Kostin's themes: GT, GM, PCLN, AMZN, CMCSA, LOW, DG, TSN, ADM, CVS, AVP, WAG, PXD, HAL, JPM, BAC, SCHW, PNC, MS, C, GNW, LNC, MET, THC, AET, UNH, ESRX, HUM, WLP, BIIB, GILD, DAL, CMI, FLR, CRM, JBL, MA, FB, MU, FSLR, VMC, MON, T.
Sep. 30, 2014, 9:56 AM
Aug. 13, 2014, 9:39 AM
UNH vs. ETF Alternatives
UnitedHealth Group Inc designs products, provides services and applies technologies that improve access to health and well-being services, simplify the health care experience and make health care more affordable.
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