Metrics Agree with UnitedHealth’s Consensus By TipRanks

United Well being Group Integrated (UNH) operates a diversified well being care firm in the US.

Lately, J.P. Morgan positioned the inventory on its “15 classic worth” record, and I am bullish as effectively. (See UNH inventory charts on TipRanks)

Continued Development

UnitedHealth (NYSE:)’s development continues, with year-over-year income rising by 14.8% in Q2. The corporate’s Optum and United segments have been seen because the driving forces behind UnitedHealth’s beautiful efficiency, as their revenues grew by 17.2% and 13% respectively. 

UnitedHealth ought to proceed doing effectively over the subsequent 12 months resulting from its obscene amount of money from operations ($20.8 billion), which drives liquidity, and permits for development acquisitions, share buybacks, and dividends.

UnitedHealth may even profit from its direct-to-consumer technique through OptumStore, which is about to rival His & Hers Well being.

Pricing Metrics, Valuation, Shareholder Compensation

If we observe UNH’s weighted common price of capital of 5.4%, we are able to conclude that buyers are assured within the agency’s means to provide residual after debt repayments.

United Well being presently trades at a reduction to its sector, based mostly on its P/E and EV/EBIT ratios. As well as, the corporate’s EPS is anticipated to develop one other 11.2% by December, that means {that a} $498 value is reachable based mostly on its justified ahead PE.

In case you’re searching for revenue along with potential capital good points, then you definately’re in the suitable place. United Well being has elevated its dividend payout for 12 straight years.

Wall Road’s Take & Conclusion

Wall Road thinks UnitedHealth inventory is a Robust Purchase, with 15 Purchase rankings, one Maintain ranking, and no Promote rankings assigned prior to now three months. The common UNH value goal of $465.75 implies 10.8% upside potential.

As talked about earlier, J.P. Morgan positioned United Well being on its classic worth shares record in August.

The inventory’s pricing and valuation metrics each point out vital upside. United Well being is not fairly a dividend aristocrat, but it surely’s a good dividend play as effectively, in case you’re searching for revenue along with capital good points.

Disclosure: On the time of publication, Steve Grey Booyens didn’t have a place in any of the securities talked about on this article.

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