UnitedHealth Group, Inc. (NYSE:UNH) - This One is a Easy Call ! ! !
Here again is one of the Dow 30 component Companies that is what I call "A Easy Call." It is very similar to 3M with a solid (better) Valuation and Technically it is extremely over-bought.
After you have years of experience in Forecasting it boils down to "Easy Calls" and Tough Calls." I have learned that unless it is an "Easy Call" with near Excellent Fundamentals and Technicals - I just move on until I find one that is. When you have a large universe of nearly all the quality and conservative Companies, it is remarkable to most Investors when I say: There are always Excellent Companies that are "Easy Calls" at or around a Bullish or Bearish Inflection Point.
The reason (UNH) is a "Easy Call" and that it is unique for the current Dow component Companies is that -- it is currently selling at its peak of $64 and therefore is in a strong ascending trend since mid 2009. Just how much higher can it go? I'm Not Sure At This Time!
I am looking for a "Probability for Profit" of at least 20% or more when I Recommend a security to my Clients. My Fundamentals for (UNH) are one of the best Dow Companies to support further appreciation of the stock price.
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UnitedHealth Group, Inc. -- (UNH)
Fundamentals: (Old-Fashioned Valuations Must be - in Place before Taking Positions). The projected Earnings Growth of (UNH) is UP and modestly ramping UP. That is a strong positive. Like so many Dow Companies, the strong price appreciation since 2009 has perhaps used up the Earnings positives and does not support further strong price appreciation. So, I am cautious. The current Price of (UNH) has more recently clearly kept up with many other Dow 30 Companies that are currently and remains lofty.
Technicals: The Indicators are all pointing to being UP. However, with the state of the General Market - Buying is definitely not prudent at this price.
I can help you with this if you ask.
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Opinion: HOLD, if you own UnitedHealth Group, Inc.
Forecast: There is nothing, on balance, to suggest that it Coming Down or Going Up in the Short (one - three months) to Intermediate (three - nine months)-Term. HOLD for now? And seek Guidance from a professional. Most "professionals" will advise holding or even buying. Do they EVER recommend selling or offer a Bearish "Warning" such as the above?
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