C. Kim Goodwin UnitedHealth Group Inc UNH-N TOP PICK Oct 01, 2004

Healthcare stocks are no longer struggling with the post-Covid hangover, better earnings recently, and good news about Medicare this evening $21 billion payment boost). He expects a good report.

Well run and uses AI a lot. It's an easy punching bag in the US for critics of the healthcare system. Health is always a political hot knife, but HC is the biggest employer in the US. Some disagree, but it's not in their interest to screw customers (by denying claims). He has been this all the way down.

He bought some yesterday. Didn't change guidance. Q4 profitability was OK, though revenue was a bit light. Health insurance in US will continue to grow, it's a leader. Core holding for him. Great distribution system, so cost is less than peers. Trump administration will not nationalize healthcare.

It is integral to the systematic delivery of health care across the U.S. and is a leader in well vertically integrated companies. There are some headwinds which he thinks will dissipate. He likes the longer term prospects and is seeing the development of per capita growth.
Buy 29  Hold 1  Sell 0

Yes. It was a top pick of his last spring. He doesn't think there will be much negative impact from Washington investigating their billing practices, though there remains headline risk. Fundamentals are improving, though they are paying out more for medical costs, which he hopes will normalize. It's trading below the market PE, when usually it trades above.

Is down 20% in 6 months and trades at 6.5x EBITA vs. 12x historically, strong managers, $20 billion free cash flow and new share buybacks.

The DOJ is going after them for Medicare payments. Is taking some risk off the table.

Leader in the space. Trades at 16x forward PE, 11% growth. Last 5 years, earnings have growth 12% a year. 200-day MA trending higher, but price is a bit below that, so technical signals are neutral. Integrated model strong. Pricing power. Down 24% from recent highs on regulatory concerns, overdone.

Near term, this can't trade at prior multiples given volatility. Anything healthcare is uncertain. He still believes in the $600 price target. Great management. They have growth.

Is up 10% in the past month. Don't chase a red hot stock, but let it come in a bit (lower). Every time this spikes, it goes down. It's best of breed.