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.
UNH may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 39 cases where UNH's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 56 cases where UNH's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 31, 2023. You may want to consider a long position or call options on UNH as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for UNH just turned positive on May 31, 2023. Looking at past instances where UNH's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
UNH moved below its 50-day moving average on May 16, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for UNH crossed bearishly below the 50-day moving average on May 19, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following 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 .
The Aroon Indicator for UNH entered a downward trend on May 24, 2023. 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 65, placing this stock better than average.
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. UNH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (5.580) is slightly higher than the industry average of (2.673). P/E Ratio (22.272) is within average values for comparable stocks, (18.586). UNH's Projected Growth (PEG Ratio) (1.548) is slightly higher than the industry average of (1.162). Dividend Yield (0.014) settles around the average of (0.017) among similar stocks. UNH's P/S Ratio (1.384) is slightly higher than the industry average of (0.708).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of hospital and medical service plans
A.I.dvisor indicates that over the last year, UNH has been closely correlated with ELV. These tickers have moved in lockstep 81% of the time. This A.I.-generated data suggests there is a high statistical probability that if UNH jumps, then ELV could also see price increases.