UnitedHealth Group posted fourth quarter earnings that exceeded analysts’ expectations.
UnitedHealth’s adjusted profits for the three months ended in September came in at $5.34 a share, 17 cents ahead of the Wall Street consensus forecast.
Revenues climbed +12.3% to $82.8 billion, vs. analysts’ estimates of $82.6 billion. Optum revenue climbed +16.5% to $47.9 billion.
UnitedHealth's medical cost ratio was 100 basis points lower at 82.8%, suggesting a smaller portion of its collected premiums were paid out on insurance claims. Premiums in the quarter rose +125 from the year-ago quarter to $64.7 billion, while operating costs climbed +11% to $76 billion.
Looking ahead, the healthcare company expects adjusted earnings for 2023 in the range of $24.40 to $24.90 per share, vs. analyst consensus on FactSet of $24.95 per share. Revenue is projected to be $357 billion to $360 billion, vs. analysts’ forecast of $356.91 billion.
The RSI Oscillator for UNH moved out of oversold territory on April 16, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 26 similar instances when the indicator left oversold territory. In of the 26 cases the stock moved higher. This puts the odds of a move higher at .
The Moving Average Convergence Divergence (MACD) for UNH just turned positive on April 17, 2024. Looking at past instances where UNH's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
UNH moved above its 50-day moving average on May 01, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for UNH crossed bullishly above the 50-day moving average on April 29, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where UNH advanced for three days, in of 341 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 72 cases where UNH's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 02, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on UNH as a result. In of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where UNH declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
UNH broke above its upper Bollinger Band on April 18, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for UNH entered a downward trend on April 05, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: UNH's P/B Ratio (5.086) is slightly higher than the industry average of (3.067). P/E Ratio (20.524) is within average values for comparable stocks, (17.509). UNH's Projected Growth (PEG Ratio) (1.382) is slightly higher than the industry average of (1.089). Dividend Yield (0.015) settles around the average of (0.020) among similar stocks. UNH's P/S Ratio (1.236) is slightly higher than the industry average of (0.671).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. UNH’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of hospital and medical service plans
Industry ManagedHealthCare