Healthy profits at United Health Group
UnitedHealth Group Inc. (UNH) offers health care coverage and related services to help people achieve improved health and well-being through all stages of life. The company's products and services reflect a number of core capabilities, including medical information management, health benefit administration, care coordination, risk assessment and pricing, health benefit design and provider contracting. With these capabilities, it is able to provide comprehensive health care management services through organized health systems and insurance products.
The company is increasing EPS by effective cost ccontainment and share repurchase plans. These gains are being impacted by the high unemployment rates but this is being offset by the enrollment of the aging Baby Boomers who are becoming a larger share of the health care industry's customers.
The price keeps inching up and hit 7 new highs in the last month with a price increase of 4.43%. The stock has a 100% Barchart technical buy signal and traded recently at 37.26 which is above its 50 day moving average of 34.12. The stock has a Relative Strength Index of 66.40%.
Wall Street brokerage analysts have 15 buy and 7 hold recommendations published. They expect sales to increase 7.30% this year and 6.16% next year. Earning per share are estimated to be up 19.40% this year and continue an upward trend for a 5 year annual EPS growth rate of 9.60%.
There is a very wide and positive general investor following of this stock on Motley Fool with the CAPS members voting 3,307 to 160 that the stock will beat the market. The All Stars also have a positive vote of 1,075 to 25. Fool notes that Wall Street columnists have written positive articles 25 to 2.
This stock has :
1 - Positive and consistent upward price trends
2 - 100% Barchart technical buy signal
3 - Wall Street buy recommendations based on projected increases in sales and earnings
4 - A wide and positive general investor sentiment
Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.