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UnitedHealth Group's (UNH) Arm OptumRx Expands in Arizona
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UnitedHealth Group Incorporated’s (UNH - Free Report) pharmacy care arm, OptumRx, recently announced the opening of a home delivery pharmacy in Mesa, AZ. This move results in the expansion of UNH’s pharmacy care services and people gaining access to medications at lower costs, resulting in better health outcomes. UNH aims to enhance its offerings with improved benefits, cost savings and broad network access.
This move bodes well for UNH, as it aims to generate 1.5 billion scripts through OptumRx by 2023. The company’s pharmacy business has been delivering a consistently strong performance as it provides relief to consumers and employers by providing medications at the lowest possible cost. These features enhance the company’s offerings and should expand its retention rates. The company aims to achieve a retention ratio in the high 90s and get new clients in the recent selling season, implying robust growth prospects for OptumRx.
OptumRx accounts for half of the revenues of the Optum segment, implying growth in OptumRx to contribute majorly to the total segment’s revenues. UNH aims to innovate and provide affordable and innovative solutions to clients through OptumRx. The new facility will prepare and pack medications daily to improve patient satisfaction. New customer wins should fuel the growth of this segment in the future.
The company also partnered with ProHealth Care on Oct 5, utilizing its prowess to improve the administrative functions of ProHealth. Expansion initiatives and more such partnerships are expected in the future as UnitedHealth Group continues to invest in enhancing Optum’s capabilities. The segment is crucial to the company’s diversification strategy. In 2022, the segment’s revenues improved 17% year over year. Looking ahead, each of its sub-segments is expected to deliver a solid performance, driving the overall business’s growth.
Shares of UnitedHealth Group have gained 1.2% in the year-to-date period compared with the industry’s 0.1% growth. UNH currently carries a Zacks Rank #3 (Hold).
The bottom line of Molina Healthcare surpassed estimates in each of the last four quarters, the average surprise being 7.2%. The Zacks Consensus Estimate for MOH’s 2023 earnings and revenues indicates 16% and 3.4% growth, respectively, from their corresponding prior-year actuals. The consensus mark for MOH’s 2023 earnings has moved 0.6% north in the past 60 days.
Ensign Group’s earnings beat estimates in two of the trailing four quarters, matched the mark once and missed on the remaining one occasion, the average surprise being 0.9%. The Zacks Consensus Estimate for ENSG’s 2023 earnings and revenues indicates 14.7% and 22.7% growth, respectively, from the prior-year actuals. The consensus mark for ENSG’s 2023 earnings has moved 0.2% north in the past 60 days.
Medpace’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 22.3%. The Zacks Consensus Estimate for MEDP’s 2023 earnings indicates a rise of 15.3%, while the consensus mark for revenues suggests an improvement of 27.8% from the corresponding year-ago reported figures. The consensus estimate for MEDP’s 2023 earnings has moved 2.1% north in the past 60 days.
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UnitedHealth Group's (UNH) Arm OptumRx Expands in Arizona
UnitedHealth Group Incorporated’s (UNH - Free Report) pharmacy care arm, OptumRx, recently announced the opening of a home delivery pharmacy in Mesa, AZ. This move results in the expansion of UNH’s pharmacy care services and people gaining access to medications at lower costs, resulting in better health outcomes. UNH aims to enhance its offerings with improved benefits, cost savings and broad network access.
This move bodes well for UNH, as it aims to generate 1.5 billion scripts through OptumRx by 2023. The company’s pharmacy business has been delivering a consistently strong performance as it provides relief to consumers and employers by providing medications at the lowest possible cost. These features enhance the company’s offerings and should expand its retention rates. The company aims to achieve a retention ratio in the high 90s and get new clients in the recent selling season, implying robust growth prospects for OptumRx.
OptumRx accounts for half of the revenues of the Optum segment, implying growth in OptumRx to contribute majorly to the total segment’s revenues. UNH aims to innovate and provide affordable and innovative solutions to clients through OptumRx. The new facility will prepare and pack medications daily to improve patient satisfaction. New customer wins should fuel the growth of this segment in the future.
The company also partnered with ProHealth Care on Oct 5, utilizing its prowess to improve the administrative functions of ProHealth. Expansion initiatives and more such partnerships are expected in the future as UnitedHealth Group continues to invest in enhancing Optum’s capabilities. The segment is crucial to the company’s diversification strategy. In 2022, the segment’s revenues improved 17% year over year. Looking ahead, each of its sub-segments is expected to deliver a solid performance, driving the overall business’s growth.
Shares of UnitedHealth Group have gained 1.2% in the year-to-date period compared with the industry’s 0.1% growth. UNH currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the Medical space are Molina Healthcare, Inc. (MOH - Free Report) , The Ensign Group, Inc. (ENSG - Free Report) and Medpace Holdings, Inc. (MEDP - Free Report) . Each of these companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The bottom line of Molina Healthcare surpassed estimates in each of the last four quarters, the average surprise being 7.2%. The Zacks Consensus Estimate for MOH’s 2023 earnings and revenues indicates 16% and 3.4% growth, respectively, from their corresponding prior-year actuals. The consensus mark for MOH’s 2023 earnings has moved 0.6% north in the past 60 days.
Ensign Group’s earnings beat estimates in two of the trailing four quarters, matched the mark once and missed on the remaining one occasion, the average surprise being 0.9%. The Zacks Consensus Estimate for ENSG’s 2023 earnings and revenues indicates 14.7% and 22.7% growth, respectively, from the prior-year actuals. The consensus mark for ENSG’s 2023 earnings has moved 0.2% north in the past 60 days.
Medpace’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 22.3%. The Zacks Consensus Estimate for MEDP’s 2023 earnings indicates a rise of 15.3%, while the consensus mark for revenues suggests an improvement of 27.8% from the corresponding year-ago reported figures. The consensus estimate for MEDP’s 2023 earnings has moved 2.1% north in the past 60 days.