UnitedHealth Group Inc

UNH-N

NYSE:UNH

321.82
2.72 (0.85%)
UnitedHealth Group Inc. is an American for profit managed health care company based in Minnetonka, Minnesota. It is sixth in the United States on the Fortune 500.
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Analysis and Opinions about UNH-N

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Opinion
Expert
TOP PICK
TOP PICK
May 20, 2016

This stock is very consistent. Management has a stated pledge to return 50% of free cash flow and invest with the rest. This is very stable and very predictable. Excellent execution. Consistently high multiple, which he likes. Dividend yield of 1.52%.

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This stock is very consistent. Management has a stated pledge to return 50% of free cash flow and invest with the rest. This is very stable and very predictable. Excellent execution. Consistently high multiple, which he likes. Dividend yield of 1.52%.

BUY WEAKNESS
BUY WEAKNESS
April 6, 2016

He likes it. They will benefit from Obamacare going forward. He took it out of the portfolio, but will revisit it. It got overbought so wait for it to pull back before buying.

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He likes it. They will benefit from Obamacare going forward. He took it out of the portfolio, but will revisit it. It got overbought so wait for it to pull back before buying.

COMMENT
COMMENT
April 5, 2016

This whole industry is fascinating. All these companies are going through a period where they are trying to merge. The whole sector demographically is positive. He is keeping an eye on this, but not ready to pull the trigger yet.

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This whole industry is fascinating. All these companies are going through a period where they are trying to merge. The whole sector demographically is positive. He is keeping an eye on this, but not ready to pull the trigger yet.

TOP PICK
TOP PICK
March 2, 2016

The largest Medicare contractor in the US and a top Pharmacy Benefits Management (PBM). Best in class management. They have a stated mandate to return 50% of free cash flow every year. Significant demographic tailwinds for years to come. Dividend yield of 1.65%.

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The largest Medicare contractor in the US and a top Pharmacy Benefits Management (PBM). Best in class management. They have a stated mandate to return 50% of free cash flow every year. Significant demographic tailwinds for years to come. Dividend yield of 1.65%.

PAST TOP PICK
PAST TOP PICK
December 22, 2015

(A Top Pick Aug 21/15. Up 1 point to 3%.) Their predominant business is in health insurance, but also does pharmacy benefits management. Their PBM business is under a little bit of pressure right now, but this is one of the best operators in the business.

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(A Top Pick Aug 21/15. Up 1 point to 3%.) Their predominant business is in health insurance, but also does pharmacy benefits management. Their PBM business is under a little bit of pressure right now, but this is one of the best operators in the business.

COMMENT
COMMENT
November 27, 2015

He would stick with Anthem (ANTM-N) instead. This one was a little bit late to the party in terms of taking up the insurance through Obama care.

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He would stick with Anthem (ANTM-N) instead. This one was a little bit late to the party in terms of taking up the insurance through Obama care.

PAST TOP PICK
PAST TOP PICK
October 6, 2015

(Top Pick Aug 21/15, Up 0.93%) A huge secular tailwind. Mid teen earnings growth and a reasonable multiple. They are a flawless operator.

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(Top Pick Aug 21/15, Up 0.93%) A huge secular tailwind. Mid teen earnings growth and a reasonable multiple. They are a flawless operator.

TOP PICK
TOP PICK
August 27, 2015

The largest diversified health care services company providing healthcare benefits and assistance to people in the US and Brazil. Positioned to benefit from Obama care and the aging US population. Growth rate relative to its peers is quite strong. They are going to grow in terms of membership because of what is happening with insurance in the US. Dividend yield of 1.7%.

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The largest diversified health care services company providing healthcare benefits and assistance to people in the US and Brazil. Positioned to benefit from Obama care and the aging US population. Growth rate relative to its peers is quite strong. They are going to grow in terms of membership because of what is happening with insurance in the US. Dividend yield of 1.7%.

COMMENT
COMMENT
August 26, 2015

He prefers Anthem (ANTM-N), but this one does the job as well. You need critical mass (size) and they both have that. This company recently bought Catamaran, a pharmacy benefit company. This is where you bolt on naturally accretive operations to these companies, and they work very, very well.

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He prefers Anthem (ANTM-N), but this one does the job as well. You need critical mass (size) and they both have that. This company recently bought Catamaran, a pharmacy benefit company. This is where you bolt on naturally accretive operations to these companies, and they work very, very well.

TOP PICK
TOP PICK
August 21, 2015

Largest health medicare contractor in the US. More healthcare will be needed in the future. The stock never seems to get ahead of itself. Sees more acquisitions coming. Solid management. Not going for home runs, all singles and doubles, which he really likes.

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Largest health medicare contractor in the US. More healthcare will be needed in the future. The stock never seems to get ahead of itself. Sees more acquisitions coming. Solid management. Not going for home runs, all singles and doubles, which he really likes.

PAST TOP PICK
PAST TOP PICK
August 10, 2015

(Top Pick Aug 1/14, Up 63.33%) It got taken out. They benefited by Obamacare.

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(Top Pick Aug 1/14, Up 63.33%) It got taken out. They benefited by Obamacare.

BUY WEAKNESS
BUY WEAKNESS
July 14, 2015

In the healthcare industry which have all done very well. There is consolidation going on and the sector has outperformed. Wouldn’t be chasing this right now. The whole sector has benefited because of the aging population. The bigger you get, the lower your infrastructure costs are, and the more your network expands. Wait for a pullback.

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In the healthcare industry which have all done very well. There is consolidation going on and the sector has outperformed. Wouldn’t be chasing this right now. The whole sector has benefited because of the aging population. The bigger you get, the lower your infrastructure costs are, and the more your network expands. Wait for a pullback.

TOP PICK
TOP PICK
July 9, 2015

This company sells health plans. They are about the biggest in the US. There is a growing population of people over 65 and 85 who are buyers of these plans. Obama care has been supportive of insurance plans across the board. This is a business that is consolidating. Beat their most recent quarter by 8%. Dividend yield of 1.68%.

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This company sells health plans. They are about the biggest in the US. There is a growing population of people over 65 and 85 who are buyers of these plans. Obama care has been supportive of insurance plans across the board. This is a business that is consolidating. Beat their most recent quarter by 8%. Dividend yield of 1.68%.

PAST TOP PICK
PAST TOP PICK
July 24, 2014

(Top Pick Jul. 11/13, Up 27.78%) They raised their guidance going forward. Have an increasing opportunity to grow the business. He would focus more on biotech, but the whole sector has been performing well.

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(Top Pick Jul. 11/13, Up 27.78%) They raised their guidance going forward. Have an increasing opportunity to grow the business. He would focus more on biotech, but the whole sector has been performing well.

PAST TOP PICK
PAST TOP PICK
July 21, 2014

(A Top Pick July 23/13. Up 18.88%.) There was a feeling they were going to get hurt by Obama care, but it wasn’t. Two weeks ago consensus was $126, and they reported $142 for the quarter, 2 quarters in a row of above-average growth. A nice safe place to hide and have exposure to the US healthcare.

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(A Top Pick July 23/13. Up 18.88%.) There was a feeling they were going to get hurt by Obama care, but it wasn’t. Two weeks ago consensus was $126, and they reported $142 for the quarter, 2 quarters in a row of above-average growth. A nice safe place to hide and have exposure to the US healthcare.

COMMENT
COMMENT
July 17, 2014

Great-looking chart and a good company. These stocks sometimes get ahead of themselves and arc off the trend line, and sometimes retrace back to the trend line. This might be due for one of those pullbacks. However, the trend is your friend and the stock is going up.

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Great-looking chart and a good company. These stocks sometimes get ahead of themselves and arc off the trend line, and sometimes retrace back to the trend line. This might be due for one of those pullbacks. However, the trend is your friend and the stock is going up.

BUY
BUY
November 27, 2013

If you are looking to participate in this sector, this is the right one. Well managed. Had some issues several years ago with options. At 13X earnings, it is very good valuation. You are looking at probably under 10% earnings growth but you are not paying a lot for that.

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If you are looking to participate in this sector, this is the right one. Well managed. Had some issues several years ago with options. At 13X earnings, it is very good valuation. You are looking at probably under 10% earnings growth but you are not paying a lot for that.

DON'T BUY
DON'T BUY
October 21, 2013

Prefers Well Point. Likes this one. CEO warned in recent earnings call that with Obamacare there would be margin squeeze. Well Point has a better diversified exposure there.

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Prefers Well Point. Likes this one. CEO warned in recent earnings call that with Obamacare there would be margin squeeze. Well Point has a better diversified exposure there.

BUY
BUY
October 10, 2013

One of the best performing sectors this year in the market. The group has broken out of a 12 year sideways period. This one was widely under owned. He likes managed healthcare. Thinks there is upside in the stock and in earnings. Thinks you will see dividend increases.

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One of the best performing sectors this year in the market. The group has broken out of a 12 year sideways period. This one was widely under owned. He likes managed healthcare. Thinks there is upside in the stock and in earnings. Thinks you will see dividend increases.

TOP PICK
TOP PICK
July 23, 2013

Largest “managed care” company in the US. This stock would benefit from higher interest rates as they would get to raise their rates as rates go up. Quarter was a blow out quarter and the stock has done nothing but go up higher ever since. Even at the current price, it is at about 13X earnings and could go to 15X giving the benefit of earnings growth. 1.5% yield.

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Largest “managed care” company in the US. This stock would benefit from higher interest rates as they would get to raise their rates as rates go up. Quarter was a blow out quarter and the stock has done nothing but go up higher ever since. Even at the current price, it is at about 13X earnings and could go to 15X giving the benefit of earnings growth. 1.5% yield.

BUY
BUY
July 17, 2013

Feels this is well-positioned given the turmoil of Obama care and the new mandate. You really want to move towards the very large HMOs, where there is scale and the ability to adapt. He prefers Wellpoint (WLP-N).

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Feels this is well-positioned given the turmoil of Obama care and the new mandate. You really want to move towards the very large HMOs, where there is scale and the ability to adapt. He prefers Wellpoint (WLP-N).

TOP PICK
TOP PICK
July 11, 2013

Healthcare, as a group, tends to be one of the best performing parts of the market. This is because there is a heavy domestic focus on the US and also it is not so economically sensitive. There is a secular bull market in spending on health in the US. 90% of this company’s revenue is coming from premiums on the plans that they sell. 3%-7% growth. Yield of 1.64%. They have a platform called Optum (?), an information services platform that they used to generate fees across a number of different businesses. Cash flow grew at 16% last year and this year will be at 29% of revenues and by 2015 it will be 40% of their revenues.

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Healthcare, as a group, tends to be one of the best performing parts of the market. This is because there is a heavy domestic focus on the US and also it is not so economically sensitive. There is a secular bull market in spending on health in the US. 90% of this company’s revenue is coming from premiums on the plans that they sell. 3%-7% growth. Yield of 1.64%. They have a platform called Optum (?), an information services platform that they used to generate fees across a number of different businesses. Cash flow grew at 16% last year and this year will be at 29% of revenues and by 2015 it will be 40% of their revenues.

PAST TOP PICK
PAST TOP PICK

(Top Pick Jul 25/12, 18.67%)

TOP PICK
TOP PICK
July 25, 2012
Can benefit from the long-term secular health theme he believes in. Serves over 75 million people globally. Widely, most diversified company in the managed healthcare space. Able to service Medicare and Medicaid platforms also. Revenues is about 48% commercial, 38% Medicare and 14% Medicaid. 1.6% dividend yield.
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Can benefit from the long-term secular health theme he believes in. Serves over 75 million people globally. Widely, most diversified company in the managed healthcare space. Able to service Medicare and Medicaid platforms also. Revenues is about 48% commercial, 38% Medicare and 14% Medicaid. 1.6% dividend yield.
PAST TOP PICK
PAST TOP PICK
September 14, 2010
(A Top Pick Sept 9/09. Up 23%.) Sold at $31.70 for an 11.6% gain. Health care reform was aimed at health insurance companies and thinks the large insurers such as this are going to be tied to the medical loss ratio that governments are going to control.
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(A Top Pick Sept 9/09. Up 23%.) Sold at $31.70 for an 11.6% gain. Health care reform was aimed at health insurance companies and thinks the large insurers such as this are going to be tied to the medical loss ratio that governments are going to control.
PAST TOP PICK
PAST TOP PICK
February 10, 2010
(A Top Pick Feb 11/09. Up 15.5%.) Earnings have continued to come through but the cloud of US health care reform has hung over it. Trading around 10X this year's earnings and 9X next year's.
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(A Top Pick Feb 11/09. Up 15.5%.) Earnings have continued to come through but the cloud of US health care reform has hung over it. Trading around 10X this year's earnings and 9X next year's.
TOP PICK
TOP PICK
September 9, 2009
Tied to healthcare reform. Controversial – is an HMO. At the worst you will see a compromise because of healthcare reform. Market has priced in the worst.
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Tied to healthcare reform. Controversial – is an HMO. At the worst you will see a compromise because of healthcare reform. Market has priced in the worst.
DON'T BUY
DON'T BUY
April 21, 2009
Political environment for health insurers is going to be very clouded. Insurance companies are going to be the whipping boys for the reforms that are going to come. They are going to be tough.
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Political environment for health insurers is going to be very clouded. Insurance companies are going to be the whipping boys for the reforms that are going to come. They are going to be tough.
TOP PICK
TOP PICK
February 11, 2009
One of the largest healthcare providers in the US, both through company-sponsored plans/individual plans, but more importantly through Medicare and Medicaid administration. Although enrolment growth has slowed, work they are doing on the Medicare and Medicaid side through the stimulus package will create more work for them. Trades at 10X earnings.
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One of the largest healthcare providers in the US, both through company-sponsored plans/individual plans, but more importantly through Medicare and Medicaid administration. Although enrolment growth has slowed, work they are doing on the Medicare and Medicaid side through the stimulus package will create more work for them. Trades at 10X earnings.
PAST TOP PICK
PAST TOP PICK
November 11, 2008
(A Top Pick Nov 9/07. Down 61%.) Sold his holdings in March at about $38. One of their major competitors stumbled and he was unsure if it was company specific or industry-specific.
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(A Top Pick Nov 9/07. Down 61%.) Sold his holdings in March at about $38. One of their major competitors stumbled and he was unsure if it was company specific or industry-specific.
DON'T BUY
DON'T BUY
June 13, 2008
Very dependent on having employers as their health care provider and started coming off when some problems came up.
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Very dependent on having employers as their health care provider and started coming off when some problems came up.
BUY
BUY
May 8, 2008
Has come close to buying this a couple of times. He has a model priced at $40.89, a 25% positive differential. It comes close, but he has not bought it yet.
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Has come close to buying this a couple of times. He has a model priced at $40.89, a 25% positive differential. It comes close, but he has not bought it yet.
PAST TOP PICK
PAST TOP PICK
January 30, 2008
A Top Pick Oct 16/07. Up 21.6%.) Health maintenance organization. Doing very well and will be earning over $4 a share in 08. Well managed company. Good sector. Still a Buy.
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A Top Pick Oct 16/07. Up 21.6%.) Health maintenance organization. Doing very well and will be earning over $4 a share in 08. Well managed company. Good sector. Still a Buy.
BUY
BUY
December 4, 2007
You want to focus on companies that have very persistent earnings and are not economically sensitive. Healthcare fits in this category. Had very strong relative price strength against the market recently.
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You want to focus on companies that have very persistent earnings and are not economically sensitive. Healthcare fits in this category. Had very strong relative price strength against the market recently.
TOP PICK
TOP PICK
November 9, 2007
The leading managed care company in the US. They were a growth stock, but the valuation is now one of a value stock. Company is rebuilding its image and is also showing very strong earnings growth. Earnings should be $3.50 this year, $4 next year and $4.50 in 09. Has a 22% ROE. Cheap stock with a high growth rate.
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The leading managed care company in the US. They were a growth stock, but the valuation is now one of a value stock. Company is rebuilding its image and is also showing very strong earnings growth. Earnings should be $3.50 this year, $4 next year and $4.50 in 09. Has a 22% ROE. Cheap stock with a high growth rate.
TOP PICK
TOP PICK
October 16, 2007
Both a valuation and a growth story. On the growth side, 18% this year, 16% next year. Biggest risk is medical cost rising without the abilities to raise revenues. (unlikely).
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Both a valuation and a growth story. On the growth side, 18% this year, 16% next year. Biggest risk is medical cost rising without the abilities to raise revenues. (unlikely).