Stock (Symbol) |
UnitedHealth (UNH) |
Stock Price |
$211 |
Sector |
| Healthcare |
Data is as of |
| November 12, 2017 |
Expected to Report |
| Jan 15 |
Company Description |
 UnitedHealth is a health and well-being company. The Company’s business platforms include UnitedHealthcare and Optum. UnitedHealthcare provides health care benefits to various customers and markets. Optum is a health services business serving the health care marketplace, including payers, care providers, employers, Governments, life sciences companies and consumers. UNH has 4 segments: UnitedHealthcare, OptumHealth, OptumInsight and OptumRx. OptumHealth is a health and wellness business serving the physical, emotional and financial needs of individuals. OptumInsight provides technology, operational and consulting services to participants in the health care industry. OptumRx is a pharmacy benefit manager. Purchased Catamaran 3/30/15. Source: Thomson Financial |
Sharek’s Take |
 UnitedHealth (UNH) has gone into healthcare insurance, made it efficient, and branched out into other areas like analytics with its Optum division to cut costs via preventative measures. Optum has multiple departments to keep you healthy:
Optum is an added option when companies purchase UnitedHealth insurance. Plus, organizations can get it without the health insurance attached. Optum — which is around 40% of overall profits — has been disrupting the industry while signing deals and getting business left-and-right. UnitedHealth left the Obamacare program last year because it wasn’t making money. Leaving Obamacare has given UNH a positive catalyst. UnitedHealth left the Obamacare program last year, which was costing the nation’s largest health insurer around 4% of profits. UNH is a growth stock with a solid Est. LTG of 15% a year and its a safe stock too. Management just increased the dividend to $3 a year (a heavy dividend) and the yield is 1.5%. UNH is on a roll beating the street, upping estimates, and delivering at least 23% profit growth the last 5 qtrs. The stock’s undervalued too. The P/E on 2018 profit estimates is 19. I feel UNH is worth a P/E of 22, which equates to a Fair Value of $238 a share next year and $271 in 2019. The company has also been upping estimates, so I envision my Fair Values rising. This stock should appeal to all-types of stock investors. |
One Year Chart |
 Profit growth clocked in at 23% last qtr as sales increased a solid 10%. Analysts had estimated 18% profit growth. Qtly profits are expected to be 18%, 6% and 9% and 8% the next 4 qtrs but the company has been upping and beating so 20% growth could continue into 2018. This stock has shot higher this year, and may need to take a breather. |
Fair Value |
 My Fair Value is 22x earnings, which gives the stock 13% upside into next year. Investors also get a 2% yield. Notice the stock has very good potential into 2019. |
Bottom Line |
 UnitedHealth has been one of the stock market’s best stocks the past decade, but the stock has ascended at a higher angle recently, so new investors might want to wait for a pullback. Otherwise, this stock is a good selection for both growth investors and conservative ones as well. The only issue I have with it other than the stock charts is profit growth is expected to slow next year and the company will have to keep beating the street to keep momentum going. UNH ranks 6th in the Conservative Growth Portfolio Power Rankings and 10th in the Growth Portfolio and Aggressive Growth Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
10 of 35Aggressive Growth Portfolio 10 of 13Conservative Stock Portfolio 6 of 32 |
