Why UnitedHealth Is Ready to Rebound
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, managed care provider UnitedHealth Group has earned a coveted five-star ranking.
With that in mind, let's take a closer look at UnitedHealth and see what CAPS investors are saying about the stock right now.
UnitedHealth facts
Headquarters (founded) | Minnetonka, Minn. (1974) |
Market Cap | $54.9 billion |
Industry | Managed health care |
Trailing-12-Month Revenue | $110.6 billion |
Management | CEO Stephen Hemsley (since 2006) |
Return on Equity (average, past 3 years) | 18.5% |
Cash/Debt | $11.4 billion / $16.8 billion |
Dividend Yield | 1.6% |
Competitors | Aetna |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 3,484 members who have rated UnitedHealth believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, ValueInvestor747, offered a cautiously bullish take on UnitedHealth:
A bit risky for me as I do not like an industry with such small margins and such a large amount of government regulation; that being said, [UnitedHealth] is the dominant player in the industry and past growth has been solid. I think any Medicare Advantage cuts will be more than offset by added customers under the PPACA. Additionally, acquisitions will be huge in years to come and as such a giant, [UnitedHealth] has a huge advantage. They are also expanding into the Medicaid realm, which will play out nicely when Obamacare kicks in.
Of course, that short pitch doesn't even come close to telling the entire story for UnitedHealth. You're in luck, though. The Fool's brand-new premium report on UnitedHealth looks at all sides of one of the most compelling health care plays in the market. You can grab your copy here, which comes with free updates for 12 months.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why UnitedHealth Is Ready to Rebound originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends UnitedHealth Group and WellPoint. The Motley Fool owns shares of WellPoint. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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