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UnitedHealth Group: Delivering Results Again

Nov. 01, 2021 5:11 PM ETUnitedHealth Group Incorporated (UNH)38 Comments


  • This company has delivered another beat and raise, precisely what it delivered last quarter.
  • UNH has delivered 16 quarterly EPS beats in a row, though missed revenue estimates twice over the same 16 quarters.
  • These steady beats show why UNH can continue to deliver dividend growth for investors.
  • This idea was discussed in more depth with members of my private investing community, Cash Builder Opportunities. Learn More »

United Health Care Corporate Headquarters Campus

Wolterk/iStock Editorial via Getty Images

Written by Nick Ackerman

UnitedHealth Group (NYSE:UNH) is delivering results again. This stock has been providing earnings beats for several years now. Though revenue has come in shy on a couple of occasions, it is still on an impressive

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of UNH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article was originally published to members of the Cash Builder Opportunities on October 17th, 2021.

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Comments (38)

KamilAgrawala profile picture
UNH and HD, two dividend growth investments.
@Cash Builder Opportunities just recently bot the hd/low pair as as it bottom of multimonth range (hd underperform)
good article ... shorted UNH on back the UNH/SPY pair is testing all time highs (unh outperform) in the past 3 years.. independent third party research has fair value in mid 300's ...
1/6 unh/spy pair seems to have rolled over..was trading near 3 sigma rich and now near 1.5 sigma rich.. on absolute basis close below 483.73 confirms
Flex68 profile picture
@mmarek evans ,

I think you're lost.

You shorted UNH ? And you quote a fair value in "mid 300's" ?!

UNH is up about 192% over the past 5 years, up about 122% since mid October 2019, and has a current SP of $478.23.

Yeah, you keep shorting it, LOL !
Flex68 profile picture
@Cash Builder Opportunities ,

Why in the world would you offer both a comment of "thanks for reading and sharing!" and a 'Like' for such inanity??

Smells of desperation..... smdh
Company has delivered over the years. You picked a winner.......I don't
mind the low dividend because this company is all growth.
Cash Builder Opportunities profile picture
@AlieGee indeed! Thank you for your thoughts. It certainly has been a winner. I'm glad I picked it up several years ago.
Good analysis, good company. If you had to put a probability on the successful close of the CHNG transaction, what would that be?
Cash Builder Opportunities profile picture
@Klarminite thank you! That's something that I definitely couldn't answer. I could only repeat what UNH has to say on that matter. They seem fairly confident and believe it'll close in "the first part of 2022."
I believe United has been the top dow performer over last 10 years. Remember, these carriers have more earnings power than most other industries simply based upon higher rate increases than most other businesses. With increasing health care premiums their profits will continue to flourish, especially with ACA laws and the medical loss ratio requirements put in place with that law. It was a bonanza for the carriers based upon how it was structured with no adjustments to loss ratio each year being incorporated into the law. Obama folks weren't thinking this through but good for us shareholders.
Cash Builder Opportunities profile picture
@Insure57 excellent thoughts here. I wasn't aware it was the top Dow performer, I'd believe it though.
@Cash Builder Opportunities - Thanks for the article. Yes, the leveraging effect of continued premium increases over time are going to continue to drive carrier profits over time. I know this industry intimately. When the MLR requirements came out I actually confronted a carrier executive about how profitable this law would be to carriers and he just smiled.
Cash Builder Opportunities profile picture
@Insure57 thanks again! Glad to get the input from someone more familiar with the industry specifically.
Best of breed UNH, should be in your portfolio.
Cash Builder Opportunities profile picture
@Money 29 agreed! It is surprising how little attention UNH gets in the dividend growth investor space, at least in my opinion. We don't see articles so frequently on this one.
This is a core holding in any savvy investor’s portfolio.
Cash Builder Opportunities profile picture
@HawaiiAcott agreed! Thank you for taking the time to comment.
Daleem profile picture
I had a hip replacement about three years ago and was on UHC advantage plan. They assigned an advocate to my case and followed up until I recovered. I know I can get coverage for less, but no way will I change. I am super impressed with their service and don’t need the hassle one gets with A cheaper plan at my age.
Cash Builder Opportunities profile picture
@Daleem that's great input to hear! Thank you for sharing.
Flex68 profile picture
"Delivering Results Again"

Such a title might make readers believe that UNH is suddenly 'back on track' to deliver results.

Historical EPS illustrate that UNH has met or exceeded expectations since about July 2008, and has consistently beaten same since about January 2014.

Author chose, and S.A. approved, such a click-bait title?

lol, fair enough
Cash Builder Opportunities profile picture
@Flex68 thanks for the feedback! I just meant they had another beat and raise (again)...which they frequently do. I didn't think it was click-bait, at least that is wasn't my intent. I think click-bait is a bit subjective, but in my opinion, click-bait is more like "buy this SWAN today after blowout quarter!" Or those types of things.
Great company! I have had the Advantage Senior plan for a number of years and when I phone them I get a nice person who speaks English as a first language. They have gone to bat for me with providers and got the bill down. This year I had cancer surgery and racked up over $300K in bills and so far I have only had to pay around 2 grand out-of-pocket. I have never had one complaint about them in 8 years of having it. They are also a terrific investment. I will give another terrific health care stock. LH (Laboratory Holding)
Cash Builder Opportunities profile picture
@derek123 thank you for that perspective! Sorry for what you have been going through as well, that is terrible to hear. I hope all is going well and getting better.

I'm not familiar with that company. Thank for that suggestion, I'll have to give them a look!
I love this stock. I bought $20K worth about 5 years ago, reinvested all dividends, and it's now worth over $58K. I wish all of my investments performed this well. I'm also a customer of United Healthcare for my health insurance (purchased as part of employer benefit package). It is clear to me why they are successful. Their standard operating model is to deny claims and then when challenged, ask for more and more information until you give up due to exhaustion. So....I love the stock but hate the company.
Cash Builder Opportunities profile picture
@ClemsonTiger well, at least the investment side of the business is working out for you! Otherwise, that sounds quite terrible. I'm sorry to hear that.
Divi growth has been outstanding, but has not grown "for 12 consecutive quarters".
Cash Builder Opportunities profile picture
@jayemel typo! Thanks for pointing that out. I'll submit for an edit.
UNH is a 'steady Eddie' stock which goes higher and Higher and HIGHER EVERY year! Great addition to any portfolio! Longz:-)
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