We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UnitedHealth's (UNH) Optum to Buy Steward's Physician Group
Read MoreHide Full Article
UnitedHealth Group Incorporated (UNH - Free Report) unit Optum is planning to acquire Steward Health Care’s physician group, according to some filed documents by the seller with the Massachusetts Health Policy Commission. The financial details of the deal are yet to be disclosed.
Acquiring Steward Health’s nine-state-wide footprint of primary care providers and clinicians will likely strengthen Optum's position in Massachusetts and other regions. It will also provide Optum access to a larger pool of patients and potential revenue streams. The deal is expected to close in the second quarter of this year.
Optum, UnitedHealth's health service arm, plays a vital role in the company's diversification strategy and continues to gain value. Its contribution to operating earnings surged to 49.3% in 2023 from 25% in 2014. Revenues also saw a significant 24% year-over-year increase in 2023.
With strategic acquisitions, advanced technology and market-leading health analytics, Optum is well-positioned for sustained growth in modern care delivery and data-driven population health initiatives. The Optum platform is divided into three segments — OptumHealth, OptumInsight and OptumRx — revenues from which jumped 33.9%, 29.8% and 16.4% year over year in 2023, respectively.
The agreement is a strategic move for Steward Health as it seeks to recover from its financial challenges. However, according to several reports, it is expected to face regulatory scrutiny due to concerns about reduced competition and potential antitrust issues. The Health Policy Commission is expected to go over the deal to assess its effects on healthcare costs, quality and accessibility.
Price Performance
UnitedHealth shares have gained 0.1% in the past year compared with the industry’s 4.3% growth.
The Zacks Consensus Estimate for Universal Health Services’ 2024 bottom line suggests 27% year-over-year growth. UHS has witnessed four upward estimate revisions over the past 30 days against no movement in the opposite direction. It beat earnings estimates in all the last four quarters, with an average surprise of 5.9%.
The Zacks Consensus Estimate for Cigna’s full-year 2024 earnings indicates a 13% year-over-year increase. CI beat earnings estimates in each of the past four quarters, with an average surprise of 2.9%. The consensus mark for revenues suggests 20.4% growth from the year-ago period.
The Zacks Consensus Estimate for Health Catalyst’s 2024 full-year earnings implies a 120% increase from the year-ago reported figure. HCAT beat earnings estimates in each of the last four quarters, with an average surprise of 247.9%. The consensus mark for its current-year revenues is pegged at $308.2 million, which indicates a 4.2% year-over-year increase.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
UnitedHealth's (UNH) Optum to Buy Steward's Physician Group
UnitedHealth Group Incorporated (UNH - Free Report) unit Optum is planning to acquire Steward Health Care’s physician group, according to some filed documents by the seller with the Massachusetts Health Policy Commission. The financial details of the deal are yet to be disclosed.
Acquiring Steward Health’s nine-state-wide footprint of primary care providers and clinicians will likely strengthen Optum's position in Massachusetts and other regions. It will also provide Optum access to a larger pool of patients and potential revenue streams. The deal is expected to close in the second quarter of this year.
Optum, UnitedHealth's health service arm, plays a vital role in the company's diversification strategy and continues to gain value. Its contribution to operating earnings surged to 49.3% in 2023 from 25% in 2014. Revenues also saw a significant 24% year-over-year increase in 2023.
With strategic acquisitions, advanced technology and market-leading health analytics, Optum is well-positioned for sustained growth in modern care delivery and data-driven population health initiatives. The Optum platform is divided into three segments — OptumHealth, OptumInsight and OptumRx — revenues from which jumped 33.9%, 29.8% and 16.4% year over year in 2023, respectively.
The agreement is a strategic move for Steward Health as it seeks to recover from its financial challenges. However, according to several reports, it is expected to face regulatory scrutiny due to concerns about reduced competition and potential antitrust issues. The Health Policy Commission is expected to go over the deal to assess its effects on healthcare costs, quality and accessibility.
Price Performance
UnitedHealth shares have gained 0.1% in the past year compared with the industry’s 4.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
UnitedHealth currently has a Zacks Rank #3 (Hold). Enhancing the array of healthcare options, some better-ranked and promising stocks in the Medical sector are Universal Health Services, Inc. (UHS - Free Report) , The Cigna Group (CI - Free Report) and Health Catalyst, Inc. (HCAT - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Universal Health Services’ 2024 bottom line suggests 27% year-over-year growth. UHS has witnessed four upward estimate revisions over the past 30 days against no movement in the opposite direction. It beat earnings estimates in all the last four quarters, with an average surprise of 5.9%.
The Zacks Consensus Estimate for Cigna’s full-year 2024 earnings indicates a 13% year-over-year increase. CI beat earnings estimates in each of the past four quarters, with an average surprise of 2.9%. The consensus mark for revenues suggests 20.4% growth from the year-ago period.
The Zacks Consensus Estimate for Health Catalyst’s 2024 full-year earnings implies a 120% increase from the year-ago reported figure. HCAT beat earnings estimates in each of the last four quarters, with an average surprise of 247.9%. The consensus mark for its current-year revenues is pegged at $308.2 million, which indicates a 4.2% year-over-year increase.