|Bid||222.25 x 1100|
|Ask||222.98 x 1100|
|Day's Range||214.21 - 223.00|
|52 Week Range||208.07 - 287.94|
|Beta (3Y Monthly)||0.98|
|PE Ratio (TTM)||17.22|
|Earnings Date||Apr 15, 2019 - Apr 22, 2019|
|Forward Dividend & Yield||3.60 (1.46%)|
|1y Target Est||299.96|
This selloff, which actually started at the end of the last quarter, has taken apart the managed care stocks, the drug stocks, the devices and finally the biotechs. No matter, the fact is that every day there were moments in this tsunami where you simply couldn't believe the torrent of selling, but you most likely didn't even know what was going to spring a leak next. Being diversified is defensive, as we know: If you had all health care bought in March, you might be done for 2019! But I think, more important and less talked about, it allows you to be offensive, too.
The stock market churned. A Qualcomm-Apple deal led chips. Medical stocks dived on UnitedHealth. Software names fell. Netflix subscriber guidance was light. Rail stocks rallied on earnings.
CEO David Wichmann on his company's earnings conference call Tuesday: "Medicare For All." UNH shares had been bid up in Tuesday morning trade on the back of earnings and revenues that exceeded analyst estimates. Want to be alerted before Jim Cramer buys or sells JNJ or UNH?
The Dow Jones Industrial Average on Thursday midday was at the doorstep of a record close. At last check, the blue-chip index was less than 1% from its Oct. 3 peak, up 0.4% at 26,564, compared with its record put in last fall at 26,828.39, according to FactSet data. Thursday's climb was being supported by a rebound in shares of UnitedHealth Group Inc. , which has been taking it on the chin, along with the rest of the health-care sector, this week. UnitedHealth's stock was up 1.7% or $3.73, while shares of insurer Travelers Cos. Inc. , up 2.9%, or $3.91, also were helping the Dow creep toward a record, even after a brutal end to 2018 that saw the S&P 500 index and Nasdaq Composite Index all put in there most recent lows. All of the main U.S. equity benchmarks are within striking distance of all-time closing peaks.
With negative earnings revisions, the healthcare sector is expected to witness earnings growth of 1.8% in the first quarter, suggesting smooth trading for healthcare ETFs.
UnitedHealth (NYSE:UNH) delivered a perfect score Tuesday releasing Q1 2019 earnings that ticked all the boxes. Earnings? Up. Revenue? Up. Estimates? Beat on the top- and bottom-line. Yet, UNH stock dropped by more than 4%.Source: Shutterstock If you're a shareholder of UnitedHealth or other healthcare stocks selling healthcare plans, you've got to be worried that Bernie Sanders or one of the other Democratic candidates proposing a universal health care plan gets into office. Howard Schultz, who's against the proposal, recently had this to say about the idea of "Medicare-for-All".InvestorPlace - Stock Market News, Stock Advice & Trading Tips"The Democrats are now saying, 'Medicare-for-all.' That's their solution, which is basically a $33 trillion number, which would take 180 million Americans off of the insurance that's provided by their employer, wipe out the insurance industry. It's not realistic," Schultz told Yahoo Finance. Yikes. That's an ominous thought if you work for UnitedHealth or own UNH stock. If there's no insurance industry, can UnitedHealth remain in business? * 7 Stocks to Buy for Spring Season Growth It probably could. UnitedHealth's Other BusinessUnitedHealth has two reportable segments: UnitedHealthcare (health benefits) and Optum (health services).I'll admit I'm not a healthcare expert, but reading its 10-K, it would appear that most, if not all of Optum's revenues would remain intact in the event of a shift to universal healthcare. The only two areas of this segment that look to be at risk are Optum Financial Services, which operates health savings accounts, and OptumRx, which provides pharmacy care services to 65 million Americans through many of its health plans. But even there, it's possible that both of these areas would survive under universal healthcare. I know that here in Canada where I live there are lots of private insurers providing health and wellness benefits including pharmacy care above and beyond our government-run healthcare system. So, in 2018, Optum had $101.3 billion in revenue and 8.2 billion in operating earnings. Until we know otherwise, I would assume that a majority of this revenue would carry on under a universal healthcare plan. What About UnitedHealthcare?This is where it gets a little dicey. Howard Schultz states a universal healthcare system like Medicare-for-All would wipe out the insurance industry. He's half right. What Schultz forgets is that somebody has to operate the insurance system that provides universal healthcare, for example an agency that takes care of paying the doctors, hospitals, and other healthcare workers covered under the system. The agency would also have to collect the money required to operate such a system from federal and state tax revenues. All of this takes an incredible amount of human resources. I don't see why someone like UnitedHealthcare couldn't be a critical piece of this "Super" agency. America is all about outsourcing. While the system of payment might change, some of the current players could take a role in transforming America's healthcare system. So, the fact that UnitedHealth CEO David Wichmann is harping about Sanders plan suggests he's positioning the company for a seat at the table. "[Medicare-for-All would] surely jeopardize the relationship people have with their doctors, destabilize the nation's health system and limit the ability of clinicians to practice medicine at their best," Wichmann stated. "And the inherent cost burden would surely have a severe impact on the economy and jobs -- all without fundamentally increasing access to care."While I understand Wichmann's scare tactics, he has no way of knowing (same goes for Schultz, a so-called expert in healthcare) what the burden or cost will be on the American people. It's possible that more jobs could be created from a government-run system than currently exists. After all, a government-run system's goal is to break even while Mr. Wichmann has a board and shareholders to answer to. His viewpoint on cost, burden, etc., is completely biased. In 2018, UnitedHealth's health plan business generated $9.1 billion in operating profits from $183.5 billion in revenue. Optum made almost as much from 45% less revenue. It's also possible that UnitedHealth could end up making more from less than it currently does. The Bottom Line on UNH StockIf you currently own UNH stock, I wouldn't start to get worried just yet. Even if Bernie Sanders were to get into power, it would take years to implement such a change. However, you need to ask yourself two questions.First, is the opportunity cost of patiently holding UNH stock when it's facing severe headwinds, worth it? After all, there are so many other stocks you could buy with better near-term prospects.Secondly, do you have the risk tolerance for riding this storm out?If you do, I'd be buying UNH stock at $220 and hoping it falls below $200, so you can buy some more. The choice is yours.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post If You Have the Stomach, Start Buying UNH Stock as It Bottoms Out appeared first on InvestorPlace.
Is UnitedHealth Group an Attractive Buy after Its Q1 Results?(Continued from Prior Part)UnitedHealthcare’s Commercial businessUnitedHealthcare’s Employer and Individual business reported revenues of $14.08 billion in the first quarter—a rise
Is UnitedHealth Group an Attractive Buy after Its Q1 Results?(Continued from Prior Part)UnitedHealthcare’s Medicaid businessUnitedHealthcare’s Community and State business reported revenues of $11.18 billion in the first quarter—a rise of
The latest on developments in financial markets (all times local): 4:00 p.m. Stocks are closing lower on Wall Street Wednesday as losses by health care companies outweigh gains elsewhere in the market. ...
The catalyst for the rout was health-insurance giant UnitedHealth Group Inc., which used its earnings call to engage with the biggest threat to the status-quo out there: Vermont Senator Bernie Sanders’s proposal to eliminate private insurance in favor of government-run universal coverage. On the Tuesday call, UnitedHealth CEO David Wichmann said such Medicare-for-All proposals would create a “wholesale disruption of American health care,” as he called instead for changes within the existing system.
Is UnitedHealth Group an Attractive Buy after Its Q1 Results?(Continued from Prior Part)UnitedHealthcare’s Medicare and Retirement business UnitedHealthcare’s Medicare and Retirement business reported revenues of $21.10 billion in the first
The slide began in earnest on Tuesday when UnitedHealth Group Inc. -- treated by investors as a bellwether for the insurance sector -- waded into the debate over “Medicare for All,” which would expand government-administered coverage to most of the population and rewrite the businesses of U.S. health insurers, hospitals and doctors. The Tuesday losses capped the worst five-day stretch since 2011 for health insurers, despite UnitedHealth reporting earnings that beat analysts’ estimates and raising its 2019 forecast. The slide in hospital and insurance stocks continued Wednesday, wiping out billions of dollars more in market value from some of the biggest health companies in the U.S. UnitedHealth fell 3.2 percent at 2:20 p.m. in New York.
Plunging healthcare stocks dragged Wall Street lower on Wednesday, offsetting a spate of upbeat corporate earnings and encouraging economic data from the United States and China. All three major U.S. stock indexes were down, but the S&P 500 slipped to more than a percent below its record high reached in September.
Is UnitedHealth Group an Attractive Buy after Its Q1 Results?Share price movements On April 16, UnitedHealth Group (UNH) closed at $220.96, which was 4.01% lower than its previous closing price, 0.09% higher than its 52-week low of $220.77, and
UnitedHealth Group reported robust first-quarter 2019 results. The company breezed past the Zacks Consensus Estimate on both earnings and revenues and raised its full-year forecast.
The stock is down 13.3% so far this month, on track for its biggest one-month decline since February 2009 when it fell 30.64%. Jitters from investors over drug pricing reform and "Medicare for All" proposals are weighing on the stock. UnitedHealth Group UNH shares fell for a second straight day Wednesday, weighed down by concerns over possible changes to the U.S. health-care system, including creating a government-run system to provide health insurance for all Americans.
There are some very interesting cross-currents in the market Wednesday morning in reaction to various news events. In addition to the reversal in the indices, there is a bloodbath of selling in medical-related names, including biotechnology, and severe pressure on the cloud-related stocks that have been momentum favorites. The pressure on medical and biotechnology appears to be primarily a function of concern about "Medicare for All." This is a hot topic in the early political campaigns.
Health care stocks have been in a strong uptrend, but closes below several key trendlines suggest that this could change.