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Factors that Make UnitedHealth Group (UNH) an Attractive Bet Now
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UnitedHealth Group Incorporated (UNH - Free Report) remains well-poised for growth, courtesy of solid contributions by UnitedHealthcare and Optum segments, solid demand for Medicare plans, upbeat financial guidance for 2022, and adequate cash-generating abilities.
Zacks Rank & Price Performance
UnitedHealth Group carries a Zacks Rank #2 (Buy) currently.
The stock has gained 23.1% over a year compared with the industry’s growth of 20.8%. The Zacks Medical sector has lost 18.4% in the said time frame. Meanwhile, the S&P 500 composite has declined 1.9%.
Image Source: Zacks Investment Research
Favorable Style Score
UnitedHealth Group carries an impressive Value Score of B. Value Score helps find stocks that are undervalued. Back-tested results have shown that stocks with a favorable Value Score, when combined with a solid Zacks Rank, are the best investment bets.
Robust Growth Prospects
The Zacks Consensus Estimate for 2022 earnings is pegged at $21.75, indicating an increase of 14.4% on 11.6% higher revenues of $320.9 billion. The consensus mark for 2023 earnings stands at $24.90, suggesting growth of 14.5% on 8.1% higher revenues of $346.9 billion.
The expected long-term earnings growth rate is pegged at 14.8%, better than the industry’s average of 14.5%.
Impressive Earnings Surprise History
UNH boasts an impressive earnings surprise record. It has surpassed earnings estimates in each of the trailing four quarters, the average surprise being 3.73%.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2022 earnings has been revised upward by 0.3% in the past 60 days.
Solid Return on Equity
The ROE of UnitedHealth Group is 24.7% in the trailing 12 months, which remains higher than the industry average of 22%. This reflects UNH’s efficiency in utilizing its shareholders’ funds.
Solid 2022 Outlook
UnitedHealth Group estimates revenues to lie within $317 billion and $320 billion in 2022, the mid-point of which indicates an improvement of 10.7% from the 2021 reported figure.
UNH anticipates adjusted net earnings per share to be between $21.20 and $21.70 this year. The mid-point of the updated guidance suggests a 12.8% growth from the 2021 reported figure.
Business Tailwinds
Revenues of UnitedHealth Group continue to gain on the back of solid contributions from its UnitedHealthcare and Optum businesses. The strong segments are aiding the healthcare organization to develop an upgraded and efficient health system through which it can extend affordable healthcare services across several U.S. communities. Several contract wins have resulted in membership growth of UNH, which in turn, provides a boost to its top line.
UnitedHealth Group has been pursuing a merger and acquisition (M&A) strategy, which has bolstered its capabilities and extended its nationwide presence. The Optum unit inked a deal to combine with in-home health services provider LHC Group, Inc. , which is expected to result in better health outcomes.
UnitedHealth Group has well-performing Medicare and Medicaid businesses in place through which it has been devising cost-effective health plans and extending reach across inaccessible regions. Solid demand for UNH’s Medicare plans is likely to sustain driven by an aging U.S. population. The healthcare provider has resorted to developing telehealth services for which it has undertaken significant investments.
UNH boasts of a solid cash position through which it can effectively service its short-term debt obligations. Robust cash-generating abilities enable the healthcare provider to pursue significant business investments, and prudent capital deployment moves through share buybacks and dividend payments. Its dividend yield of 1.1% remains higher than the industry’s figure of 1%.
AMN Healthcare’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.60%. The Zacks Consensus Estimate for AMN’s 2022 earnings suggests 30.3% year-over-year growth, while the same for revenues implies an improvement of 25.9%. AMN Healthcare’s consensus mark for 2022 earnings has moved north by 12.4% in the past 30 days.
The bottom line of Lantheus outpaced estimates in each of the trailing four quarters, the average surprise being 84.25%. The Zacks Consensus Estimate for LNTH’s 2022 earnings suggests an increase to nearly six-fold year over year, while the same for revenues implies growth of 93.5%. Lantheus has a Growth Score of B.
Shares of AMN Healthcare and Lantheus have gained 3% and 186.1%, respectively, in a year.
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Factors that Make UnitedHealth Group (UNH) an Attractive Bet Now
UnitedHealth Group Incorporated (UNH - Free Report) remains well-poised for growth, courtesy of solid contributions by UnitedHealthcare and Optum segments, solid demand for Medicare plans, upbeat financial guidance for 2022, and adequate cash-generating abilities.
Zacks Rank & Price Performance
UnitedHealth Group carries a Zacks Rank #2 (Buy) currently.
The stock has gained 23.1% over a year compared with the industry’s growth of 20.8%. The Zacks Medical sector has lost 18.4% in the said time frame. Meanwhile, the S&P 500 composite has declined 1.9%.
Image Source: Zacks Investment Research
Favorable Style Score
UnitedHealth Group carries an impressive Value Score of B. Value Score helps find stocks that are undervalued. Back-tested results have shown that stocks with a favorable Value Score, when combined with a solid Zacks Rank, are the best investment bets.
Robust Growth Prospects
The Zacks Consensus Estimate for 2022 earnings is pegged at $21.75, indicating an increase of 14.4% on 11.6% higher revenues of $320.9 billion. The consensus mark for 2023 earnings stands at $24.90, suggesting growth of 14.5% on 8.1% higher revenues of $346.9 billion.
The expected long-term earnings growth rate is pegged at 14.8%, better than the industry’s average of 14.5%.
Impressive Earnings Surprise History
UNH boasts an impressive earnings surprise record. It has surpassed earnings estimates in each of the trailing four quarters, the average surprise being 3.73%.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2022 earnings has been revised upward by 0.3% in the past 60 days.
Solid Return on Equity
The ROE of UnitedHealth Group is 24.7% in the trailing 12 months, which remains higher than the industry average of 22%. This reflects UNH’s efficiency in utilizing its shareholders’ funds.
Solid 2022 Outlook
UnitedHealth Group estimates revenues to lie within $317 billion and $320 billion in 2022, the mid-point of which indicates an improvement of 10.7% from the 2021 reported figure.
UNH anticipates adjusted net earnings per share to be between $21.20 and $21.70 this year. The mid-point of the updated guidance suggests a 12.8% growth from the 2021 reported figure.
Business Tailwinds
Revenues of UnitedHealth Group continue to gain on the back of solid contributions from its UnitedHealthcare and Optum businesses. The strong segments are aiding the healthcare organization to develop an upgraded and efficient health system through which it can extend affordable healthcare services across several U.S. communities. Several contract wins have resulted in membership growth of UNH, which in turn, provides a boost to its top line.
UnitedHealth Group has been pursuing a merger and acquisition (M&A) strategy, which has bolstered its capabilities and extended its nationwide presence. The Optum unit inked a deal to combine with in-home health services provider LHC Group, Inc. , which is expected to result in better health outcomes.
UnitedHealth Group has well-performing Medicare and Medicaid businesses in place through which it has been devising cost-effective health plans and extending reach across inaccessible regions. Solid demand for UNH’s Medicare plans is likely to sustain driven by an aging U.S. population. The healthcare provider has resorted to developing telehealth services for which it has undertaken significant investments.
UNH boasts of a solid cash position through which it can effectively service its short-term debt obligations. Robust cash-generating abilities enable the healthcare provider to pursue significant business investments, and prudent capital deployment moves through share buybacks and dividend payments. Its dividend yield of 1.1% remains higher than the industry’s figure of 1%.
Other Stocks to Consider
Some other top-ranked stocks in the Medical space include AMN Healthcare Services, Inc. (AMN - Free Report) and Lantheus Holdings, Inc. (LNTH - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.60%. The Zacks Consensus Estimate for AMN’s 2022 earnings suggests 30.3% year-over-year growth, while the same for revenues implies an improvement of 25.9%. AMN Healthcare’s consensus mark for 2022 earnings has moved north by 12.4% in the past 30 days.
The bottom line of Lantheus outpaced estimates in each of the trailing four quarters, the average surprise being 84.25%. The Zacks Consensus Estimate for LNTH’s 2022 earnings suggests an increase to nearly six-fold year over year, while the same for revenues implies growth of 93.5%. Lantheus has a Growth Score of B.
Shares of AMN Healthcare and Lantheus have gained 3% and 186.1%, respectively, in a year.