UnitedHealth drives managed care peers higher after solid Q3 beat

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• Managed care players are trading higher in the pre-market after UnitedHealth (NYSE:UNH), with its Q3 2021 financials, exceeded analyst expectations, and raised 2021 guidance.
• In early trading, Anthem (NYSE:ANTM), Humana (NYSE:HUM), and Centene (NYSE:CNC) have added ~1.3%, ~1.5%, and ~0.9%, respectively, while UnitedHealth leads the pack with a ~2.6% rise.
• Commenting on the results, Truist analyst David MacDonald argues that the quarterly beat was driven by the medical-loss ratio in combination with continued strength in UnitedHealthcare and Optum segments and strong membership growth.
• MacDonald has a Buy rating on the stock, and the price target of $500 per share implies a premium of ~23.9% to the last close.
• Exceeding the Street forecasts of ~83.6%, the medical care ratio — a measure indicating the medical expenses as a percentage of premium revenues — reached 83.0% for the company from ~82.8% in the previous quarter.
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