UnitedHealth Group Stock Surges on Medicare Rate Increase
April 4, 2023
Trending News ☀️
UNITEDHEALTH ($NYSE:UNH): This is the largest rate increase for Medicare Advantage plans in more than a decade. UnitedHealth Group is the largest provider of Medicare Advantage plans in the U.S., so this rate increase is a major driver of their stock surge. UnitedHealth Group provides health insurance products and services, as well as technology-enabled health services, through its two subsidiaries: UnitedHealthcare and Optum. UnitedHealthcare offers a variety of health insurance products, including Medicare Advantage plans. Optum provides integrated technology-enabled services for healthcare delivery, including data analytics, pharmacy benefit management, population health management and consulting services.
Market Price
On Monday, UNITEDHEALTH GROUP stocks surged 4.6% to close at $494.2, up from the previous closing price of $472.6. The analysts also noted that UNITEDHEALTH GROUP’s strength in pharmacy benefits management, technology investments and consumer-focused initiatives should add to its long-term value. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Unitedhealth Group. More…
| Total Revenues | Net Income | Net Margin |
| 322.13k | 20.12k | 5.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Unitedhealth Group. More…
| Operations | Investing | Financing |
| 26.21k | -28.48k | 4.23k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Unitedhealth Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 245.71k | 159.36k | 79.84 |
Key Ratios Snapshot
Some of the financial key ratios for Unitedhealth Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.3% | 14.1% | 8.8% |
| FCF Margin | ROE | ROA |
| 7.3% | 23.3% | 7.2% |
Analysis
At GoodWhale, we’ve conducted a deep analysis of UNITEDHEALTH GROUP‘s fundamentals. Our findings indicate that UNITEDHEALTH GROUP is a low risk investment in terms of financial and business aspects. We’ve also detected one risk warning in their balance sheet. To learn more about this, be sure to register on goodwhale.com. GoodWhale has used its proprietary technology to analyse the financials of UNITEDHEALTH GROUP, using various methods such as financial ratios and industry-specific metrics. We looked at the company’s financial stability, liquidity, debt, profitability, and other key performance indicators to assess its risk rating. We found that this company is a low-risk investment opportunity with a good record of past performance. At the same time, our analysis identified one warning in UNITEDHEALTH GROUP’s balance sheet. This warning indicates that the company has certain weaknesses that should be addressed before investing in it. To learn more about this risk warning and to get an in-depth understanding of the company’s financials, be sure to register on goodwhale.com. More…
Peers
One of the largest health insurance providers in the United States is UnitedHealth Group Inc. They offer a wide variety of health insurance plans and are always looking for new ways to provide the best possible service to their customers. Some of their main competitors are Humana Inc, CVS Health Corp, and Centene Corp. Although all of these companies are very different, they all share one common goal: to provide their customers with the best health insurance coverage possible.
– Humana Inc ($NYSE:HUM)
Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky. As of 2019, Humana has had over 13 million customers in the United States. The company’s revenue was US$54.4 billion in 2018.
– CVS Health Corp ($NYSE:CVS)
CVS Health Corp is a leading provider of healthcare services in the United States. The company has a market capitalization of $120.33 billion as of 2022 and a return on equity of 10.96%. The company operates more than 9,700 retail pharmacies, over 1,100 walk-in medical clinics, and a leading pharmacy benefits manager with more than 77 million members. CVS Health Corp is dedicated to helping people on their path to better health by providing them with the resources they need to make informed decisions about their health and wellbeing.
– Centene Corp ($NYSE:CNC)
Centene Corporation is a large publicly traded managed care organization. The company’s core business is Medicaid managed care, but it also offers Medicare, long-term care, dental, behavioral health, and vision plans. The company serves over 25 million members in 26 states and the District of Columbia.
Centene’s market cap of $43.28 billion and ROE of 6.97% indicate that it is a large and successful company. The company’s size and success are due in part to its focus on Medicaid managed care. Medicaid is a government health insurance program for low-income Americans. Centene has been able to grow its Medicaid business by providing high-quality care at a lower cost than its competitors.
Summary
Investing in UnitedHealth Group (UNH) can be a sound choice for investors. This health insurance giant has been able to take advantage of the Obamacare regulations, resulting in strong growth in recent years. UNH recently announced a Medicare rate hike that sent their stock price up the same day. The company also provides a wide range of other healthcare products and services to customers, offering a diversified portfolio that continues to drive long-term value.
For those looking for a well-rounded company in the health insurance space, UnitedHealth Group is an attractive choice. Their track record of success, combined with their diversified offerings, provides investors with an opportunity for sustainable returns over time.
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