Healthcare Sector Ideas

[gfp927z]

UnitedHealth Group (UNH) - >>> Primarily a provider of health insurance policies, and in partnership with employers, providers, and governments, it makes healthcare accessible to more than 151 million people.


https://finance.yahoo.com/news/end-bear-market-may-sight-204211341.html


The scale of this business is visible in the company’s earnings reports. In the last reported quarter, 4Q22, UnitedHealth showed a quarterly top line of $82.8 billion, up 12% year-over-year and some $270 million ahead of expectations. At the bottom line, the company had a non-GAAP EPS of $5.34, up 19% y/y, and above consensus estimate of $5.17. For the full year, UnitedHealth had revenues of $324 billion, for a 13% y/y gain. The firm’s full-year adjusted net earnings came to $22.19 per share.

Looking ahead, UNH is guiding toward $357 billion to $360 billion in revenues for 2023, and is projecting to bring in $24.40 to $24.90 in adjusted net EPS.

Covering this stock for Morgan Stanley, 5-star analyst Erin Wright lays out a simple case for investors to consider, saying, “In health insurance, scale is king and UNH is the largest national insurer with top-three position in almost all insurance end markets. We believe the resiliency of UNH’s diversified businesses will generate long-term double-digit earnings growth with high visibility as a best-in-class vertically integrated MCO in a highly defensive category.”

To this end, Wright rates UNH shares an Overweight (i.e. Buy), and her price target of $587 implies a gain of ~22% on the one-year time horizon. (To watch Wright’s track record, click here)

Overall, the Strong Buy consensus on this stock is backed by 10 recent analyst reviews, featuring a 9 to 1 breakdown favoring Buys over Holds. The stock’s average price target of $599.33 indicates potential for a 24% one-year upside from the current share price of $481.82. As a small bonus, the company also pays regular dividends that currently yield 1.4% annually.

<<<



---