UnitedHealth stock: buy or sell?

UNH stock price: $301.43 -0.23% At close on February 21st, 2020

Updated on:
February 21st, 2020

5

After several days of continuous rises in past weeks, UnitedHealth remained stable -0.23% to $301.43.

UnitedHealth Group Incorporated operates as a diversified health care company in the United States. It operates through four segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx.

Should I buy UnitedHealth stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Following a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

These 2 buy setups work for UnitedHealth stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is UnitedHealth stock a buy?

Banks and financial institutions post stock ratings everyday. Unfortunately, we couldn't find any rating for UNH stock for the last 30 days.

UnitedHealth stock analysis

Daily outlook

UnitedHealth remained stable -0.23% on February 21st to $301.43 after topping to all time highs on Wednesday.

After several days of continuous hikes in past weeks, UnitedHealth remained stable -0.23% to $301.43. Since SMA100d and SMA200d crossed up on November, UNH price climbed $25.65 per share (9.30%). From a daily perspective, UNH is in a short term uptrend after plotting its last bottom ($285.45, on Feb 10th) higher than the previous bottom, and its last top ($306.71, on Wednesday) also over the previous top. Now trading in between its last bottom and last top UNH might consolidate in a plain range, waiting to break out over $306.71 or down under $285.45. Since October when UNH stock price broke up the SMA200d line, it gained $65.35 (27.68%). On Wednesday, UNH hit a new all time high, pushing higher than on Feb 13th tops. Check different trading setups that use ATHs as triggers.

UNH stock chart (daily)

Weekly outlook

UnitedHealth shares gained 0.89% this week and marked a new all time high at $306.71. Late January UNH collapsed a hair-raising -7.47% in just one week. Counting this, it's been 3 climbing weeks in a row, soaring a 9.90%. Early February UNH skyrocketed an exceptional 5.80% in just one week.

UNH shows a long term strength with several rising tops and rising bottoms. It left a new bottom at $270.82 early February. Previous top ($302.54) will play as a resistance in possible new gains. By mid November 2019, SMA20w and SMA40w crossed up triggering a rise of 12.32%. Since mid October 2019 when UNH stock price broke up the SMA40w line, it gained $80.21 (36.26%).

UNH stock chart (weekly)

UnitedHealth stock price history

UnitedHealth IPO was on October 17th, 1984 at $0.00 per share1. Since then, UNH stock grew a inf%, with an average of inf% per year. If you had invested $1,000 in UnitedHealth stock in 1984, it would worth $inf today.

1: Adjusted price after possible price splits or reverse-splits.

UnitedHealth stock historical price chart

UNH stock reached all-time highs on Wednesday with a price of $306.71.

UnitedHealth stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we have not detected any price target for UnitedHealth stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

After presenting its last earnings report on April, UnitedHealth . As soon as we get its posted EPS from the earnings report, we will extend this review.
UNH earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a2.32n/a
2017-Q32017-10-172.562.663.9%
2017-Q42018-01-162.522.592.8%
2018-Q12018-04-172.923.044.1%
2018-Q22018-07-173.033.143.6%
2018-Q32018-10-163.33.413.3%
2018-Q42019-01-153.23.282.5%
2019-Q12019-04-153.6n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a dazzling growth of 12.36% to $224,871.00 million dollars. However, its income margin (compared to revenues) remained constant to 5.33%, that is $11,986.00 million.

UnitedHealth fiscal year ends in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, UnitedHealth TTM sales up to March 2019 were $229,884.00 and income $12,617.00 million USD. When comparing this TTM figures with the last reported annuality, we can review UnitedHealth business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, gained a slightly good 2.23%. However, profit margin (net income/revenues) stayed constant at 5.33%.

UNH annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$122,500 M-$5,630 M4.6%-
2014$130,474 M6.51%$5,619 M4.3%-0.20%
2015$156,397 M19.87%$5,813 M3.7%3.45%
2016$184,012 M17.66%$7,017 M3.8%20.71%
2017$200,136 M8.76%$10,558 M5.3%50.46%
2018$224,871 M12.36%$11,986 M5.3%13.53%
TTM $229,884 M2.23%$12,617 M5.5%5.26%

Quarterly financial results

UnitedHealth reported $59,903.00 million in sales for 2019-Q1, a 3.15% up compared to previous quarter. Reported quarter income marked $3,467.00 M with a profit margin of 5.79%. Profit margin stayed constant a 0.55% compared to previous quarter when profit margin was 5.23%. When comparing sales to same quarter last year, UnitedHealth sales marked a cool increase and jumped a 9.13%. Looking back to recent quarterly results, UnitedHealth posted 7 negative quarters in a row.
UNH quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$50,050 M-$2,280 M4.6%-
2017-Q3$50,320 M0.54%$2,490 M4.9%9.21%
2017-Q4$52,061 M3.46%$3,617 M6.9%45.26%
2018-Q1$54,890 M5.43%$2,836 M5.2%-21.59%
2018-Q2$55,731 M1.53%$2,922 M5.2%3.03%
2018-Q3$56,174 M0.79%$3,188 M5.7%9.10%
2018-Q4$58,076 M3.39%$3,040 M5.2%-4.64%
2019-Q1$59,903 M3.15%$3,467 M5.8%14.05%

UnitedHealth ownership

When you are planning to invest in shares of a company, it's worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For UnitedHealth, 0.71% of all outstanding shares are owned by its staff.

Bearish positions for UNH stock account 0.00%, no big difference from last month.

For a better context understanding, the next table shows ownership data compared to other related companies:

UNH
Market cap$285.6 B
Total shares947.4 M
Float shares954.8 M
  - Institutional holdings (%)88.2%
  - Insider holdings (%)0.7%
Shares in short selling0.0%

UnitedHealth summary

Friday, February 21st, 2020
Open$300.47
Close$301.43
Day range$298.61 - $302.51
Previous close$302.13
Session gain-0.23%
Average true range$7.14
50d mov avg$292.09
100d mov avg$271.59
200d mov avg$255.95
Daily patternlt06a
Weekly pattern lb03a

UnitedHealth performance

To better understand UnitedHealth performance you must becnhmark its gains with other related stocks in same sector or industry. For UnitedHealth, the benchmark is made against .
Stock3m6m12m
UNHUnitedHealth9.30%31.80%14.76%

UnitedHealth competitors

Unfortunately, we could not find any public company that could be defined as UnitedHealth competitor. This doesn't mean UnitedHealth does not have any competitor in the market, it's just we could not detected it.

    Latest UnitedHealth stock news