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Why UnitedHealth (UNH) is an Attractive Stock to Own Now
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UnitedHealth Group Inc. (UNH - Free Report) stock looks promising at the moment, given that the mid-term election which should favor Medicaid expansion and aid the company’s revenues. We are positive on the company’s prospects and believe that the time is right for you to add the stock to your portfolio as it looks promising and is poised to carry the momentum ahead.
The stock has seen the Zacks Consensus Estimate for 2018 earnings revised 0.3% upwards over the past 30 days.
Shares of the company have gained 26% in a year's time, in-line with that of its industry's growth.
What Makes UnitedHealth an Attractive Pick?
Gain from Medicaid Expansion: The company should gain from the recent mid-term elections, which saw the Democratic party gaining control of the House of Representatives. This means that chances of the repeal of Obamacare, as sought by the Republican party over the past two years has dimmed. It also implies that changes to health insurance exchanges (HIX) and Medicaid expansion will be off the table.
Moreover, Medicaid expansion has been approved in the three states of Nebraska, Idaho, and Utah, covering around 300,000 low-income people. UnitedHeath should gain from this Medicaid expansion.
Other companies poised to benefit from this expansion are Molina Healthcare Inc. (MOH - Free Report) , Centene Corp. (CNC - Free Report) and WellCare Health Plans, Inc. .
Since 2010, UnitedHealth has grown to serve more than 3 million additional Medicaid members. The company via its business segment, UnitedHealthcare Community & State, has nearly 30 years of experience in serving state partners through the administration of large-scale Medicaid and other state programs.
From 2013 to 2017, UnitedHealthcare Community & State revenues witnessed nearly a 20% CAGR. The company has achieved this growth by fostering long-term, sustainable relationships with its state customers, winning new business and expanding its footprint in the states it serves.
Solid Rank & VGM Score: UnitedHealth currently has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Guidance Revised Up: With the release of the third-quarter results, the company guided up (for the fourth time) its earnings expectation for 2018. It now expects full-year adjusted earnings per share of $12.80 and growth of about 27% (versus the previous guided range of $12.50 and $12.75). The increased guidance makes the stock attractive.
Strong Business: Apart from industry specific and regulatory factors, the company is gaining from its inherent strong business model. A number of acquisitions taken over the past many years have added to its business capabilities, helping it to expand both horizontally as well as vertically.
Most impressive is UnitedHealth’s development of its health services unit named Optum, the business nature of which keeps it outside the purview of regulations (primarily the Affordable Care Act), thus providing it with business diversification and earnings resilience.
All in all, UnitedHealth is well poised for growth due to both company-specific and industry-related factors.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Why UnitedHealth (UNH) is an Attractive Stock to Own Now
UnitedHealth Group Inc. (UNH - Free Report) stock looks promising at the moment, given that the mid-term election which should favor Medicaid expansion and aid the company’s revenues. We are positive on the company’s prospects and believe that the time is right for you to add the stock to your portfolio as it looks promising and is poised to carry the momentum ahead.
The stock has seen the Zacks Consensus Estimate for 2018 earnings revised 0.3% upwards over the past 30 days.
Shares of the company have gained 26% in a year's time, in-line with that of its industry's growth.
What Makes UnitedHealth an Attractive Pick?
Gain from Medicaid Expansion: The company should gain from the recent mid-term elections, which saw the Democratic party gaining control of the House of Representatives. This means that chances of the repeal of Obamacare, as sought by the Republican party over the past two years has dimmed. It also implies that changes to health insurance exchanges (HIX) and Medicaid expansion will be off the table.
Moreover, Medicaid expansion has been approved in the three states of Nebraska, Idaho, and Utah, covering around 300,000 low-income people. UnitedHeath should gain from this Medicaid expansion.
Other companies poised to benefit from this expansion are Molina Healthcare Inc. (MOH - Free Report) , Centene Corp. (CNC - Free Report) and WellCare Health Plans, Inc. .
Since 2010, UnitedHealth has grown to serve more than 3 million additional Medicaid members. The company via its business segment, UnitedHealthcare Community & State, has nearly 30 years of experience in serving state partners through the administration of large-scale Medicaid and other state programs.
From 2013 to 2017, UnitedHealthcare Community & State revenues witnessed nearly a 20% CAGR. The company has achieved this growth by fostering long-term, sustainable relationships with its state customers, winning new business and expanding its footprint in the states it serves.
Solid Rank & VGM Score: UnitedHealth currently has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Guidance Revised Up: With the release of the third-quarter results, the company guided up (for the fourth time) its earnings expectation for 2018. It now expects full-year adjusted earnings per share of $12.80 and growth of about 27% (versus the previous guided range of $12.50 and $12.75). The increased guidance makes the stock attractive.
Strong Business: Apart from industry specific and regulatory factors, the company is gaining from its inherent strong business model. A number of acquisitions taken over the past many years have added to its business capabilities, helping it to expand both horizontally as well as vertically.
Most impressive is UnitedHealth’s development of its health services unit named Optum, the business nature of which keeps it outside the purview of regulations (primarily the Affordable Care Act), thus providing it with business diversification and earnings resilience.
All in all, UnitedHealth is well poised for growth due to both company-specific and industry-related factors.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>