UNH - UnitedHealth Group Incorporated
| Previous Close | 244.71 |
| Open | 244.21 |
| Bid | 0.00 x 900 |
| Ask | 0.00 x 1100 |
| Day's Range | 239.92 - 244.60 |
| 52 Week Range | 208.07 - 287.94 |
| Volume | 2,950,266 |
| Avg. Volume | 3,660,334 |
| Market Cap | 227.595B |
| Beta (3Y Monthly) | 0.68 |
| PE Ratio (TTM) | 18.05 |
| EPS (TTM) | 13.31 |
| Earnings Date | Oct 14, 2019 - Oct 18, 2019 |
| Forward Dividend & Yield | 4.32 (1.77%) |
| Ex-Dividend Date | 2019-09-13 |
| 1y Target Est | 295.96 |
- InvestorPlace
3 Healthcare Stocks to Trade: UNH, JNJ and PFE
Even under normal circumstances, the healthcare stocks are prone to headline risk. Case in point, what happened to Sarepta (NASDAQ:SRPT) last night when the stock fell 15% on FDA news. Add to it that the U.S. is approaching another round of elections, and it makes healthcare stocks even riskier than normal -- through no fault of their own.In late June, I discussed three healthcare stocks to buy and for the most part the trades paid quickly. But since then, the stock markets in general had several mini corrections. We had fear flashes over geopolitical headlines, China's currency crisis and most recently, a bond-yield crash. So it's only fair to revisit those names again as the dust is settling. * 10 Undervalued Stocks With Breakout Potential So today we are discussing United Health (NYSE:UNH), Pfizer (NYSE:PFE), and Johnson & Johnson (NYSE:JNJ) stocks. I'll start with my conclusion first. All three are still good stocks to buy at these levels -- but for different reasons.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Johnson & Johnson (JNJ)Johnson & Johnson is a long-time American success story. They are a global household name and their products are ubiquitous. From a valuation perspective, JNJ stock is relatively cheap because it has a modest price-to-earnings (P/E) ratio and pays a decent dividend.JNJ could be cheaper, but this is a management team that has proven itself through thousands of headline worries. The current headlines are nothing new for JNJ. So they have nothing but a temporary effect on the overall trajectory of JNJ stock.That said, Johnson & Johnson is still a buy here for anyone who's looking to add this sector to their portfolio. It is important to note that the company is probably past its talcum-powder headline risk by now even though it's not officially resolved. So I wouldn't take a full position all at once. Alternatively, I can sell puts below the current JNJ stock price to generate income from the intrinsic value of JNJ stock this way I don't even need a rally to win. United Health (UNH)United Health stock has performed the best of the three healthcare stocks since my last write up. It had an immediate 9% spike so from a trading perspective that was good timing.In addition, the overall thesis on UNH stock since then has not changed. It is still trailing the S&P 500 year-to-date. But over the last five years, UNH stock is up 180%, which is four times better than the S&P.After the July spike, UNH stock price faded the rally, but is has fallen into the same support zone from which it broke out. So this is the opportunity for the bulls to rinse-and-repeat another run.Technically speaking, UNH range is tightening into a point, so a move is coming in either direction. It is setting lower-highs and higher-lows at a point that coincides with the 12 month point-of- control for the stock. This is significant because this is literally where bulls and bears have agreed the most.So they will fight it out hard at this price once more and create support. As long as UNH stock holds above $240 per share, the bulls have a shot at retesting $260 or higher. There will be resistance along the way perhaps at $255 and most certainly at $256.50. * 10 Mid-Cap Dividend Stocks to Buy Now Conversely, there is the threat that the bears are able to break below $240 per share. If that happens, it could turn into a bearish head-and-shoulder pattern to target $224 per share. This is not a forecast but it's definitely a scenario that exists currently below UNH stock price. Pfizer (PFE)Pfizer stock was once bulletproof, but it can't even find footing of late. But maybe this time will be different. From current levels Pfizer stock can mount a revenge rally. Clearly so far, its stock performance metrics are poor so this has a lot of hopium tied to it.So this is definitely a tactical trade, and it should have a hard stop below $34 per share. This inadvertently is also a long-term five-year-old pivot point that also happens to be the point of control for that same period. So mathematically speaking, this is where bulls and bears love to disagree. This congestion should act as support.Simply put, if I buy PFE stock here, I literally have more upside potential than downside risk based on the 5-year price history. Fundamentally speaking, PFE is not expensive selling at 17 P/E and three times book. Yes, it can get cheaper, but this trade set up is tactical, so fundamentals don't matter as much for the short term.Longer-term, the Pfizer management team needs to re-earn Wall Street trust so that trades like this one would be with conviction. Maybe then the bulls will be able to drag the PFE stock out of the dumps and back in line with the overall stock market or at least its sector.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 3 Healthcare Stocks to Trade: UNH, JNJ and PFE appeared first on InvestorPlace.
- Benzinga
It's Still All About Politics For This ETF
The health care sector and the related exchange traded funds have been mired in political controversy this year and that is particularly true of health care services providers. What Happened As has been ...
- American City Business Journals
UAB Health System and UnitedHealthcare finalize agreement
UnitedHealthcare and the UAB Health System have finalized their agreement on a health insurance contract, ensuring that policyholders of UnitedHealthcare can continue to see UAB medical providers and utilize all UAB Health System entities. According to UAB, the new contract will be in effect for two years. “We are pleased that we were able to finalize an agreement with United Healthcare that will allow us to continue in our mission to provide the highest quality health care to their policy holders in Alabama,” UAB Health System CEO Will Ferniany said. “As the flagship hospital for the state, we provide medical services that no other health care facility can provide and we are committed to offering our services to everyone in the state of Alabama.” UnitedHealthcare also released a statement: “UnitedHealthcare and UAB Health System have finalized a new multi-year relationship that enables plan participants enrolled in UnitedHealthcare commercial and Medicare Advantage health plans to have continued access to all UAB facilities and physicians.
- Simply Wall St.
What To Know Before Buying UnitedHealth Group Incorporated (NYSE:UNH) For Its Dividend
Dividend paying stocks like UnitedHealth Group Incorporated (NYSE:UNH) tend to be popular with investors, and for good...
- Zacks
UnitedHealth (UNH) Down 5.7% Since Last Earnings Report: Can It Rebound?
UnitedHealth (UNH) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
- GuruFocus.com
David Tepper Invests in 2 Managed Care Companies in 2nd Quarter
Guru also buys satellite telecom company Continue reading...
- Moody's
UnitedHealthcare Insurance Company -- Moody's announces completion of a periodic review of ratings of UnitedHealth Group Incorporated
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of UnitedHealth Group Incorporated and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
- Motley Fool
Myriad Genetics Limps Into Fiscal 2020
A sluggish end to fiscal 2019 and weaker-than-expected guidance for the year ahead aren't instilling much confidence in investors.
- InvestorPlace
3 Reasons to Park Tesla Stock and Leave
Up until fairly recently, I used to be a big fan of Elon Musk and his vaunted company Tesla (NASDAQ:TSLA). However, a series of unnecessary controversies and unforced errors made me change my opinion. Granted, I still think the man is a genius. However, I wanted to avoid the coming train wreck in TSLA stock.Source: Sheila Fitzgerald / Shutterstock.com And man, was that ever the right decision. Year-to-date, Tesla stock is down more than 28%. Of course, this figure includes the effect of June and July's sympathy rally in TSLA. Without it, shares would have shed closer to 40%.For the bears, I say "never say never." In my opinion, TSLA stock is on the verge of falling into an overwhelmingly negative ecosystem. From internal troubles to external headwinds, Tesla is about to face an unprecedented series of challenges.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHere are three reasons to avoid Tesla stock (unless you want to short it): Recession Cuts Two Ways for TSLA StockOn Wednesday, the Dow Jones Industrial Average suffered an 800-point drop, the worst day of 2019 so far. Since no publicly traded company operates in a vacuum, virtually all stocks tanked. Even companies like UnitedHealth Group (NYSE:UNH) which has no exposure in China dipped severely. This drew fears of a coming recession.Logically, then, it wasn't a good day for Tesla stock, which does have exposure in China. In fact, before the U.S.-China trade war escalated in the past few weeks, TSLA was making an aggressive push toward dominating the electric vehicle market share in China. * 10 Stocks Under $5 to Buy for Fall You can say those plans got scuttled.But that's only the headline headwind. The other swing of the blade comes from a possible recession's associated risks. Primarily, I'm talking about oil prices. During the midweek session, the international oil benchmark Brent crude dropped more than 3% on weak global economic data.That's a massive problem for TSLA stock because it takes away the EV's principal selling point: eliminating pain at the pump.Thus, if we head into a recession, don't expect consumers to jump on EVs. By the way, Tesla's cars aren't that reliable, taking away another selling point and adding troubles to TSLA stock. Tesla Stock Could Get 'ICE-d'I believe most economists agree that we're headed toward at least a market correction, if not a recession. Given that we're on the longest bull market ever, I think that's a reasonable forecast.But let's say that we don't have a recession for whatever reason. Maybe President Donald Trump and Chinese President Xi Jinping engage in a "Titanic"-like bromance. Or maybe the Federal Reserve finally found the magic formula to quantitative easing.Would an extension of the bull market save Tesla stock? I highly doubt it because of the competition.As I argued last month, we're living in the golden age of the internal combustion engine, or "ICE" for short. While fossil-fueled cars are archaic compared to EVs, they offer astounding conveniences and performance at a great price.Previously, I used the example of a Toyota's (NYSE:TM) popular Camry: It's practical, sporty, reliable and affordable. Also, I think it's good looking. But the point is, modern ICE cars are combining so many attributes under one umbrella. On the other hand, because EVs represent relatively new technologies, they lack ICE cars' consumer friendliness.As an aside, consider General Motors' (NYSE:GM) 2020 Corvette. A mid-engine beast that resembles an Italian exotic, GM made the shocking announcement of selling their flagship for only $60,000. Who'd buy an EV under such an aggressive pricing environment?The innovation in ICE cars is bad news for TSLA stock. Same Old TeslaFinally, let's discuss the third reason to avoid TSLA stock: We're still dealing with the same old Tesla. Specifically, the company loves to overpromise and underdeliver.This has been a criticism that has dogged the company for years. Usually, this has revolved around car deliveries. But recently, the bearish assessment extends to product features, such as automated driving.In the past, Wall Street gave Tesla stock substantial leeway. After all, EVs represented an exciting new technology. And while traditional automakers forwarded ugly or otherwise uninspiring hybrids, Tesla cars were undeniably gorgeous. Stated differently, Tesla did EVs right.But the honeymoon phase is over. The Street wants to see hard numbers to back up the premium in TSLA stock. They also want Musk to stop making unnecessary errors and start taking his business seriously.Of course, some of the bullish arguments rest on the company doing exactly that. But for me, I'm going to read between the lines.As you likely know, Tesla has experienced a mass exodus of key executives. Most recently, chief technology officer JB Straubel stepped down from his post.You've got to wonder what's going on at Tesla. Executives at these types of organizations are overpaid and underworked. So it must take something extraordinary for them to give up such great money. Whatever the case, it's probably not conducive for TSLA stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post 3 Reasons to Park Tesla Stock and Leave appeared first on InvestorPlace.
- Investor's Business Daily
Why This Genetic-Testing Outlet Just Wiped Out Its 26% Breakout Gain
Myriad Genetics stock crashed Wednesday after the genetic-testing outlet unveiled new reimbursement challenges, dampening its 2020 outlook. Shares wiped out their gains after a breakout.
- GuruFocus.com
Jim Simons Exits UnitedHealth, Costco
Guru's largest sales of 2nd quarter Continue reading...
- Zacks
Teladoc Up 33% Year to Date: Will the Momentum Continue?
Teladoc's (TDOC) vast business presence in the growing telehealth industry with many deal wins and international expansion should drive long-term growth.
- Business Wire
UnitedHealth Group Board Authorizes Payment of Quarterly Dividend to Shareholders
The Board of Directors of UnitedHealth Group , at its regularly scheduled meeting, authorized payment of a cash dividend of $1.08 per share, to be paid on September 24, 2019, to all shareholders of record of UnitedHealth Group common stock as of the close of business on September 16, 2019.
- Motley Fool
What You'll Want to Know About Myriad Genetics' Disappointing Q4 Results
There wasn't much to like with the molecular diagnostics company's latest quarterly update.
- GuruFocus.com
Chris Davis Buys 3 Stocks in 2nd Quarter
Guru’s largest new position is Humana Continue reading...
- GuruFocus.com
US Indexes Close Higher Tuesday With China Tariff Reprieve
S&P; 500 up 1.48% Continue reading...
- Moody's
Montgomery (County of) OH -- Moody's assigns Baa1 to Premier Health Partners' (OH) Ser. 2019B & 2019C; outlook negative
Rating Action: Moody's assigns Baa1 to Premier Health Partners' (OH) Ser. New York, August 13, 2019 -- Moody's Investors Service has assigned Baa1 underlying ratings to Premier Health Partners' (PHP, OH) proposed Hospital Facilities Revenue Refunding Bonds, Series 2019B (Premier Health Partners Obligated Group) and Series 2019C (Premier Health Partners Obligated Group). Moody's expects that these bonds will be issued in the variable rate mode and backed by letters of credit from PNC Bank, N.A.. Moody's maintains Baa1 ratings on existing revenue bonds of PHP.
- InvestorPlace
Dow Jones Today: It Was a Good Day…Finally
For what seems like the first time in an eternity, stocks enjoyed a good day Tuesday. Much of that had to do with President Donald Trump pledging to back off of threats to levy fresh tariffs on Chinese imports starting next month.Citing "health, safety, national security and other factors," the U.S. Trade Representative (USTR) said that new tariffs on certain consumer-related items would be delayed until mid-December. That announcement came as officials from the U.S. and China, the warring factions in the trade spat, agreed to hold talks again in a couple of weeks."Separately, China's Commerce Ministry said Vice Premier Liu He had spoken by phone with U.S. Trade Representative Robert Lightizer and Treasury Secretary Steven Mnuchin and they agreed to talk again in two weeks," according to CNBC.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Safe Dividend Stocks for Investors to Buy Right Now As recent history shows, trade talks between the U.S. and China can turn on a dime, but at least for today, the news was good and that was enough to send the Nasdaq Composite higher 1.95% while the S&P 500 rose 1.47%. The Dow Jones Industrial Average tacked on 1.44%.Something that has not been said here very often in recent weeks: in late trading, all 30 members of the Dow Jones Industrial Average were in the green. Tech Tops the DowSince stocks rallied due to trade news, it is not surprising that tariff-sensitive technology stocks were among Tuesday's big winners, including Dow components Apple (NASDAQ:AAPL) and Intel (NASDAQ:INTC), which added 4.23% and 2.72%, respectively."Further, as part of USTR's public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain article," said the USTR. "Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing."That list includes several products that Apple makes and Intel has some exposure to. So while today's pops in those names wasn't surprising, the moves higher were nonetheless embraced by investors.Not to be a downer, but this is an appropriate time to remind readers of just how sensitive technology stocks, including Apple, are to trade tiffs. You've probably experienced that phenomenon first hand this year, and data confirm the sector's export-heavy tendencies. In a note out today, S&P Dow Jones said S&P 500 technology companies got just over 58% of their 2018 sales from ex-U.S. markets, well above the 42.90% rate for the S&P 500 overall. More Dow WinnersAhead of Thursday's earnings reports Walmart (NYSE:WMT) jumped 2.21% today, but this was a tariff sympathy play. Looking at the list of items mentioned by the USTR, Walmart sells all of those things and the largest U.S. retailer hawks plenty of goods made in China.If the positive trade vibes stick, that is meaningful for Walmart ahead of the holiday shopping season because the company is a major seller of computers, toys, and video game-related fare. Additionally, many Walmart shoppers are price-sensitive. The idea of the retailer having to pass on tariff costs to consumers is largely viewed as unappealing to investors.Athletic apparel giant Nike (NYSE:NKE) gained 1.67% today. Again, this is a pretty simple scenario to explain: the USTR list mentioned "certain items of footwear and clothing" and Nike certainly makes "certain" clothing and footwear items. Bottom Line: Broad-Based Strength on the DowI'm fond of saying in this space that investors should not get too caught up in the gyrations of a single trading day, no matter how good or bad. However, another bright spot to consider is how broad the strength was.What I'm getting at is, plenty of Dow stocks that are not tariff-sensitive joined Tuesday's party. For example, all of the index's financial services names finished in the green while UnitedHealth (NYSE:UNH), a company with essentially no China exposure, surged 2.50% to finish as the third-best Dow performer behind Apple and Intel. Indeed, that's a positive sign.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Real Estate Investments to Ride Out the Current Storm * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk * 7 Safe Dividend Stocks for Investors to Buy Right Now The post Dow Jones Today: It Was a Good Day…Finally appeared first on InvestorPlace.
- MarketWatch
Dow rallies nearly 450 points on gains in Apple Inc., Intel stocks
The Dow Jones Industrial Average is rallying Tuesday afternoon with shares of Apple Inc. and Intel leading the way for the blue-chip average. The Dow (DJIA) was most recently trading 449 points (1.7%) higher, as shares of Apple Inc. (AAPL) and Intel (INTC) have contributed to the index's intraday rally. Apple Inc.'s shares are up $9.50, or 4.7%, while those of Intel are up $1.40 (3.1%), combining for a roughly 74-point boost for the Dow.
- Zacks
Why Should You Add Universal Health (UHS) to Your Portfolio?
Banking on its solid second-quarter results and a growing bottom line, Universal Health (UHS) holds potential to garner benefits for investors.
- GuruFocus.com
5 Stocks With High Business Predictability Ratings
Apple tops the list Continue reading...
- TipRanks
3 High-Yield Dividends to Boost Returns
The Federal Reserve last month cut interest rates for the first time since 2008, ending a decade-long hands-off approach to monetary policy. While Fed chair Jerome Powell explicitly stated that this move is a one-off and does not herald a new round of cuts, most market watchers are predicting at least one more cut before the end of the year. At the same time, bond yields are at historic lows – the US 10-year Treasury note is below 1.6%, the 30-year note is near its all-time low, and the UK 10-year bond is below 0.5%. It’s a difficult minefield for return-conscious investors to navigate.Which makes dividend stocks a natural choice. Public companies are not bound to the prevailing interest rates, and so even in times of high rates stock returns can outpace bonds. In today’s low-rate environment, stocks – and especially dividend stocks – are an investor’s best choice for a strong return. And since investing is all about profits and returns, let’s take a look at three stocks that offer high returns through premium dividends. AT&T, Inc. (T)The modern incarnation of Ma Bell, AT&T has long been one of the market’s best dividend stocks. While the payout is modest, at $2.04 per share annually, the yield, currently at 5.9%, puts T among the top-ten highest-yielding dividends in the S&P 500.The high-yielding dividend isn’t the only attraction here – T shares have been on an upward trend for the past six months, gaining over 20% since early-February. In its recent Q2 earnings report, AT&T disclosed 89 cents EPS on $45 billion in revenues, meeting expectations despite a slide in DirecTV subscriptions. In the words of CEO Randall Stephenson, “We’re halfway through the year and on track to deliver on all our 2019 priorities. We continue to pay down debt and are more confident than ever that we’ll meet our yearend deleveraging goal, and we’ll look at buying back stock.”AT&T shares currently sell for $34.54 and hold a Strong Buy rating from the analyst consensus, based on 7 buy and 2 hold rating given in the past three months. The average price target of $36.14 implies a modest upside potential of 4.6% for the stock.Cowen’s Colby Synesael (a 5-star analyst according to TipRanks) reviewed T after the earnings report, and raised his price target 17% to $40. He said, “The company met or beat revenue/EBITDA for each segment except International versus our estimates. The company is on pace to meet or exceed its 2019 guidance.” Synesael’s price target suggests an upside of 15% for AT&T shares. Boeing Company (BA)It’s no secret that Boeing has taken a hard hit recently, as the company reported its largest-ever quarterly loss last month, of $2.9 billion. The losses come as the company’s 737 MAX airliner – its best-selling narrow-body jet – remains grounded after the two recent fatal crashes. With the grounding going on four months now, Boeing was forced to charge the costs – slower production lines and missed deliveries – on its quarterly report. The company reported 104 fewer aircraft deliveries in Q2 2019 compared to the year-ago quarter.The news wasn’t all bad for Boeing and its investors, however. Boeing’s services business posted a $400 million revenue increase, while the defense segment gained $6.6 billion for the quarter. The company bid successfully on several Pentagon contracts, and the F/A-18 family of fighter jets remains in production.Despite earnings loss, Boeing shares remain a strong investment. The company has proven resilient over the years, and has a reputation for consistently rewarding its shareholders with a lucrative dividend. The yield is modest at 2.44%, but the high share price boosts the annual payout to $8.22. Boeing has been consistently raising the dividend payout for the last decade.Boeing remains a Strong Buy according to the analyst consensus. Even with the serious headwinds it has been facing this year, BA shares have received 12 buy and 4 hold ratings in recent months. Shares are priced at $337, but the average price target of $432 indicates that Wall Street’s analysts see the current trading level as too low. The upside potential is 28%, especially impressive given the high price of the shares.Writing from Vertical Research Partners, Robert Stallard (a 5-star analyst) noted, “In terms of the numbers, 2Q was actually better than what we had conservatively modelled for Boeing… there remains considerable uncertainty in the estimates going forward, as there are no doubt many different assumptions regarding the MAX and its return to action.” Stallard set a $413 price target on the stock, lightly lower than the average, but still suggesting a 22% upside. UnitedHealth Group, Inc. (UNH)UnitedHealth is the world’s largest provider of health insurance, by any measure. The company posted over $226 billion revenues in 2018, and serves over 115 million customers. It’s a giant, in a giant industry. UNH has also used that revenue stream to pay back shareholders, steadily increasing the dividend since 2010. The payout is now $4.32 per year ($1.08 quarterly), on a yield of 1.74%.In addition to the high dividend, UNH also offers investors a solidly profitable business. The company reported Q2 earnings in the middle of July, and beat the EPS estimate by 3.6%, showing $3.73 per share.Steven Halper (a 5-star analyst) from Cantor Fitzgerald reiterated his buy rating on the stock after the earnings report, saying, “We continue to believe UNH is attractively positioned given its integrated model and consistent execution.” Halper gives UNH a $310 price target, indicating an upside of 24%.Overall, UNH is another Strong Buy on the analyst consensus, based on 9 buys and 1 hold from the last three months. The stock’s shares sell for $248, so the average price target of $303 suggests an upside potential of 22%.Visit TipRanks to find out what Wall Street’s best analysts are saying about today’s Trending Stocks.
- InvestorPlace
Start Comparing CVS Stock to UnitedHealth
CVS Health (NYSE:CVS) stock is getting results combining the health insurance income of Aetna with the outgo of its pharmacies and health services.Source: Shutterstock The proof came in its second-quarter earnings report, with adjusted net income of $4 billion, $1.89 earnings per share and adjusted revenue of $63.4 billion. Same store sales were up 4.2%, pharmacy market share was up 1.2% at 26.6% and the company generated $5.3 billion in operating cash flow.The results put CVS stock in another league. Stop comparing it to Walgreens Boots Alliance (NASDAQ:WBA), which saw falling earnings on $34.6 billion of revenue. Instead, compare it to UnitedHealth Group (NYSE:UNH), which earned $3.3 billion, $3.60 per share fully adjusted, on revenue of $60.6 billion in its most recent quarter.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Aristocrat Stocks to Buy Now No Matter What The CVS stock results "demolished" Wall Street expectations but should not have been a surprise. CVS vs. UnitedHealthIt has been a long time since any health insurer could go toe-to-toe with UnitedHealth. The company has spent 15 years installing technology through its Optum unit, integrating the former Catamaran pharmacy benefit manager. It is by far the largest player in the health insurance industry, with almost 13% of all premiums.UnitedHealth's size, and the cost control it generates, have also benefited investors. The shares are up over 200% over the last five years, while CVS has fallen in value by 25%. But Aetna, one of the companies that had fallen behind, merged with CVS pharmacies -- and therefore with Caremark, CVS' pharmacy benefits manager -- gaining low-cost facilities to create a second large player.CVS Health is now going to start capitalizing on that synergy by expanding its home dialysis service, creating an Amazon-like membership service called CarePass and continuing to open stores while Walgreens cuts back.I have been pounding the table for the potential of this merger for some time. That's because combining pharmacy facilities with insurance is the best way for the private market to generate cost control. My model here has been Centene (NYSE:CNC), whose combination of premium income and facilities lets it turn a profit even on Medicare and Medicaid contracts. What Business WantsPoliticians debate whether a public plan or one with private options can bring cost control. The market is saying whoever holds the money must be able to control how it is spent.That's what UnitedHealth and Centene have, and what CVS Health is gaining. About 75% of a health plan's cost relates to chronic conditions, preventable things like heart disease, kidney failure and diabetes. Having control of the facilities, making sure people take their medicine and keeping people out of the hospital is the key to reducing costs.All players in the healthcare game know this. That's why drug companies are desperate to keep even Medicare from bargaining for lower prices. That's why hospitals fear the CVS-Aetna merger. The "front door" to care in the past has always been a doctor or hospital. CVS is making it your local pharmacy. The Bottom Line on CVS StockUnitedHealth has three times the market cap of CVS, even though CVS now brings in more revenue.CVS' integration with Aetna is still in its early stages, and it's already showing it can deliver fatter margins than UnitedHealth.All healthcare stocks will remain under pressure as the political debate continues. CVS Health already has a 50-cent-per-share dividend yielding 3.4%. Its dividend yield is better than UnitedHealth's $1.08 per share dividend, yielding 1.76%.The result of the political debate is going to be a managed care model, combining income with outgo. That's where CVS Health is going.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in CVS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Aristocrat Stocks to Buy Now No Matter What * 7 Stocks to Buy to Ride the Vegan Wave * 4 Safe Stocks to Buy Amid Trade War Turbulence The post Start Comparing CVS Stock to UnitedHealth appeared first on InvestorPlace.
- Moody's
Team Health Holdings, Inc. -- Moody's changes Team Health's outlook to negative; affirms B3 CFR
Moody's Investors Service ("Moody's") today affirmed the B3 Corporate Family Rating (CFR) and B3-PD Probability of Default Rating of Team Health Holdings, Inc. ("Team Health"). Moody's also affirmed the B2 rating on the company's senior secured credit facilities and Caa2 rating on its unsecured notes.
- American City Business Journals
This health care agency incentivizes its employees — $600 in premium reductions — to be healthier
The level of participation from employees and spouses is exceeding expectations, a firm executive said.
