UnitedHealth (UNH, $529.51) tops Q2 earnings expectations
UnitedHealth Group Inc. reported its second-quarter adjusted earnings that exceeded analysts’ expectations. The company also boosted its earnings guidance for the full year.
UnitedHealth’s adjusted earnings came in at $5.57 a share, exceeding the $5.21 a share expected by analysts surveyed by FactSet.
Revenue of $80.3 billion also beat analysts’ forecasts for $79.7 billion (according to FactSet consensus estimates).
The company raised its full-year adjusted earnings outlook to $21.40 to $21.90 a share, which is a range compared to prior forecast of $21.20 to $21.70. Analysts had expected $21.69 a share.
UnitedHealth’s second quarter medical care ratio (i.e. the percentage of premiums paid out as medical claims) was 81.5%, down from 82.8%. A lower ratio implies higher profitability for the insurer.
“Customers are responding as we build on our five growth pillars, enabling us to move into the second half of 2022 with strong momentum serving ever more people more deeply,” said Andrew Witty, chief executive officer of UnitedHealth Group.
UNH in upward trend: price may ascend as a result of having broken its lower Bollinger Band on May 18, 2023
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 .
Technical Analysis (Indicators)
Bullish Trend Analysis
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 .
Bearish Trend Analysis
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.
Fundamental Analysis (Ratings)
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).
Notable companies
Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of hospital and medical service plans
Industry ManagedHealthCare
UNH and
Correlation & Price change
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.
