The U.S. Healthcare sector is a good place to be. He prefers CVS but UNH is also excellent. More money is spent on healthcare in the U.S. than anywhere else in the world.
Allan Tong’s Discover PicksUNH is a one-stop shop for health in America by operating insurance, pharmacies and clinics. If there is a caveat, it’s that possible UNH stock has enjoyed too much of a run lately. However, since Boxing Day have retraced from $530 to $489. The street has 11 buys and three holds at a $602.64 price target which is 23% higher than now. Read 3 Defensive Stocks to Catch the Rebound for our full analysis.
Currently long on the stock as believes healthcare good sector.
Required service in healthcare.
Value of stock attractive (24x earnings).
Small dividend yield at ~2% that is safe.
A leader. Always outperforms the S&P 500. Healthcare performed quite well last year, and now there's a bit of rotation out and into higher beta names. Next 12-18 months, you still want healthcare in your portfolio. Defensive capabilities along with growth. 20x forward earnings, 12% growth rate. Yield is 1.3%, which will grow.
UNH vs. ELV A better choice is ELV, the old Anthem. It comes down to valuation. While the metrics are similar, the PE is 22-23x for UNH, yet 6 points lower for ELV. Virtually identical performance.
(A Top Pick Oct 11/22, Up 0%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with UNH has triggered its stop at $500. To remain disciplined, we recommend covering the position at this time.
Great. A Republican mid-term win should solidify this and other healthcare insurers, as there won't be the pricing pressure from the Democrats. On valuation, he prefers ELV (the old Anthem) at 6 multiple points cheaper.
(A Top Pick Oct 11/22, Up 9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with UNH is progressing well. To remain disciplined, we recommend trailing up the stop to $500.
Stockchase Research Editor: Michael O'Reilly This defensive holding, UNH, is the largest managed care organization in the US, providing health care plans, pharmacy and analytics services. Recently reported earnings beat analyst expectations and support a 25% ROE. Cash reserves are growing, while stock is being repurchased. We recommend placing a stop-loss at $450, looking to achieve $590 -- upside potential of 16%. Yield 0% (Analysts’ price target is $590.00)
Healthcare offers both growth and defence. Their valuation remains reasonable and they have pricing power. AbbVie and Merck (his favourite) are also in this group. XLV is down only 12% vs. S&P down 24%.
Will it be affected by a Republican majority? One of the top performers in the S&P for a number of years. Among its peers, you can find other opportunities, equally successful, with less risk from a lower multiple. No political risk either way, as 70% of Americans are happy with their healthcare. See his Top Picks.
Healthcare gives you the combination of defence and offence. Largest managed care provider in the US. Medical insurance, pharma benefits, and healthcare services create a strong value proposition to its customers. This will lead to steadily and reliable sales. Last quarter, easily beat expectations and raised earnings guidance for the full year. Earnings growth should top 12% over the next few years. Yield is 1.26%, will grow over time. (Analysts’ price target is $579.00)
This one has many major components, and all are growing nicely. Growth expected at 15% this year and next. Small dividend, growing double digits. Ultimately, legislative is supportive of these companies. Great performer in a tough market. He'd buy here, great risk/reward. Though if the market recovers quickly, it may not outperform in the near term.
UnitedHealth Group Inc (UNH) Frequently Asked Questions
What is UnitedHealth Group Inc stock symbol?
UnitedHealth Group Inc is a American stock, trading under the symbol UNH (previously UNH-N on Stockchase) on the New York Stock Exchange (UNH). It is usually referred to as NYSE:UNH or UNH