UnitedHealth Group Incorporated (UNH) Stock Guide
Updated: December 02, 2021
Bull case
Revenue growth higher than the industry and sector averages
Company’s profitability is improving
Forward dividend yield higher than the industry and sector averages
Buy analyst rating
Bear case
Forward P/E ratio high relative to industry peers
Forward P/B ratio high relative to industry peers
Forward P/S ratio high relative to industry peers
Forward PEG ratio high relative to industry peers
High short interest

Before we start: if you're looking for UNH stock price, you can quickly find it out by visiting Finny and typing "UNH quote". If you're looking for a quick scoop on UNH stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "UNH". You'll get all this info in one place. Or you can just type "UNH news" to get the latest stock news.

Looking to buy or sell UnitedHealth Group Incorporated (UNH)? Interested in getting the full scoop on UNH, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this UNH stock guide, we'll address key questions about UNH, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are UNH earnings?
2. When is UNH earnings date?
3. What is UNH dividend?
4. What is UNH dividend yield?
5. What is UNH stock forecast (i.e., prediction)?
6. UNH buy or sell? What is UNH Finny Score?
7. What are the reasons to buy UNH? Why should I buy UNH stock?
8. What are the reasons to sell UNH? Why should I sell UNH stock?
9. What are UNH key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are UNH earnings?

UNH trailing 12-month earnings per share (EPS) is $17.59.

2. When is UNH earnings date?

UNH earnings date is January 18, 2022.

3. What is UNH dividend?

UNH forward dividend is $5.80.

4. What is UNH dividend yield?

UNH forward dividend yield is 1.39%.

Analyst Predictions

5. What is UNH stock forecast (i.e., prediction)?

Based on UNH analyst price targets, UNH stock forecast is $483.42 (for a year from now). That means the average analyst price target for UNH stock is $483.42. The prediction is based on 27 analyst estimates.

The low price target for UNH is $435.00, while the high price target is $522.00.

UNH analyst rating is Strong Buy.

Analysis

6. UNH buy or sell? What is UNH Finny Score?

Our quantitative analysis shows 4 reasons to buy and 5 reasons to sell UNH, resulting in Finny Score of 44.

7. What are the reasons to buy UNH? Why should I buy UNH stock?

Here are the reasons to buy UNH stock:

  • UnitedHealth has the largest and most diverse membership base within the MCO market, which gives it significant competitive advantages.
  • The firm’s diversification into high margin healthcare IT services niche gives it the opportunity to increase its bottom line through a high growth market niche.
  • As United solidifies its major PBM operations, it will reap significant long-term economic profits from the 1 billion annual prescription claims it now possesses.
  • The company revised its 2018 financial outlook to reflect the effects of the U.S. corporate tax law changes, dedicating a significant portion of the benefits to accelerate investments in data analytics, technology and innovations for better serving consumers and care systems, and to advance new and existing business platforms. UnitedHealth Group now expects 2018 net earnings of $11.65 to $11.95 per share and adjusted net earnings of $12.30 to $12.60 per share (versus previous adjusted net earnings of $10.55-$10.85).
  • In a year’s time, shares of UnitedHealth have returned 45.5%, outperforming the industry’s growth of 42.8%. The company’s strong business fundamentals and strong earnings guidance will keep the stock momentum alive.
  • The company has grown its revenues consistently over the past several years. It has witnessed a CAGR of 11% from 2006-2016. The trend continued in 2017 which saw revenue rise by 9% year over year.
  • UnitedHealth’s health service business, branded as Optum, is becoming an increasingly valuable business. It is also crucial to the company’s diversification strategy. The primary growth drivers for Optum are pharmacy care services, care delivery, technology, government services, and international. Management is considering the expansion of the health service business to 35–40% of operating income over the long term.
  • UnitedHealth’s membership has been growing consistently over many years and the trend continued in 2017 with medical enrollment up 1.4% year over year. Membership growth was primarily driven by growth in government business, partly offset by declines in the commercial and international segments. In 2018, Medicare and Medicaid business will further fuel membership growth.
  • UnitedHealth is aggressively expanding its international business due to increasing regulations in the U.S. The major deal to acquire Brazil-based Amil Participações S.A attests to the fact. Other overseas acquisitions made by the company include Dubai-based Al Sagr National Insurance Co., which will allow the company to expand in the Middle East.
  • UnitedHealth has a healthy balance sheet with unparalleled financial flexibility. The company has also been aggressively repurchasing shares. Historically, the company had favored share buybacks and mergers over dividend payments as ways to deploy capital.
  • UNH quarterly revenue growth was 14.80%, higher than the industry and sector average revenue growth (6.18% and 5.21%, respectively). See UNH revenue growth chart.
  • UNH profitability is improving. The YoY profit margin change was 0.10 percentage points. See UNH profitability chart.
  • UNH forward dividend yield is 1.39%, higher than the industry (0.40%) and sector (0.12%) forward dividend yields. See UNH forward dividend chart.
  • UNH average analyst rating is Strong Buy. See UNH analyst rating chart.

8. What are the reasons to sell UNH? Why should I sell UNH stock?

Let's look at the reasons to sell UNH stock (i.e., the bear case):

  • The overhaul of the U.S. healthcare market has built unprecedented uncertainty into the operating environment for UnitedHealth.
  • Increased transparency and competition will pressure pricing and profits for MCOs.
  • MA rates will be under a steep downward trend, pressuring one the largest sources of revenue for UnitedHealth.
  • In 2017, the company witnessed membership declines in the Commercial and International segments. The company has further guided a loss of 100,000 to 200,000 members in fee- based category due to a large public sector customer loss recently. The international segment revenues are expected to remain flat or decline by 150,000 due to macro-economic contraction in the private healthcare market in Brazil, where the company operates.
  • The reintroduction of the tax creates an earnings headwind in 2018 due to an increase in tax rate, continued market share gains in its benefits businesses, the company’s inability to recover its customers in Medicare business, timing in the commercial business and the non-tax deductibility of the fee itself, creating a 75 cent per share after-tax drag on earnings year-over-year.
  • UnitedHealth's valuation looks stretched at the current level. Looking at the company’s price-to-earnings ratio, investors may not want to pay any further premium. The company is currently trading at a forward 12-month price-to-earnings ratio of 22.1 which is above its median range of 19.3.
  • UNH forward P/E ratio is 21.03, which is high compared to its industry peers’ P/E ratios. See UNH forward P/E ratio chart.
  • UNH Price/Book ratio is 6.39, which is high compared to its industry peers’ P/B ratios. See UNH forward Price/Book ratio chart.
  • UNH Price/Sales ratio is 1.56, which is high compared to its industry peers’ P/S ratios. See UNH forward Price/Sales ratio chart.
  • UNH PEG ratio (P/E adjusted for growth) is 1.74, which is high compared to its industry peers’ PEG ratios. See UNH PEG chart.
  • UNH short interest (days to cover the shorts) ratio is 2.96. The stock garners more short interest than the average industry, sector or S&P 500 stock. See UNH short interest ratio chart.

Key Stats

9. What are UNH key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for UNH:

Price $446.23
Industry Health Care Plans
Sector Healthcare
Average Price Target / Upside $483.42 / 8.33%
Average Analyst Rating Strong Buy
Number of Employees 300,000
Forward Dividend Yield 1.39%
Market Cap $424.17B
Forward P/E Ratio 21.03
Price/Book Ratio 1.56
Revenue (TTM) $272.10B
YoY Quarterly Revenue Growth 14.80%
Profit Margin 5.33%

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