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UnitedHealth (UNH) Stock: Buy, Sell, Or Hold? | 2-Minute Analysis

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This video’s transcript was generated by a third party. It is not curated or reviewed and is provided for convenience and information purposes only. The accuracy and completeness of the transcript are not guaranteed.

Welcome to 2 Minute Analysis. Our goal is to not only entertain, but provide value and insights about the investments you care about. Today’s episode is from this user’s request. So, let’s throw 2 minutes on the clock and dive-in.

Today, we’re looking at UnitedHealth Group Incorporated, ticker symbol UNH. Kicking things off here with the Quant rating system, it currently has a Hold rating on the stock. We’ll dive into the metrics here in just a moment.

Jumping over to Seeking Alpha Analysts who in aggregate have a Buy rating on the stock, and that’s 17 analysts providing coverage in the last 30-days. And lastly, Wall Street analysts with a Buy rating as well on this stock, and that’s 27 analysts across the Street providing coverage in the last 90-days.

To learn more about how the Seeking Alpha Quant system and Seeking Alpha Analysts outperform the market, visit the link in the description of this video.

Now, let’s dive deeper. This is a $299.6 billion market capitalization company in the healthcare sector and the managed healthcare industry.

Kicking things off here with the Valuation grade, which is currently a B-, you’ll see that it’s in-line with the sector here for the PEG GAAP ratio of 0.69 compared to the sector at 0.69. So, if we instead look at something like the price-to-sales over the last trailing 12-months, it’s at 0.69 as well, compared to the sector at 3.70. Also to mention, the trailing 12-months enterprise value to sales is at 0.83, compared to the sector at 3.84, showing that the stock may be undervalued, but the thing to keep in mind here is the growth as noted here in the PEG ratio.

Speaking of which, let’s jump over to the Growth grade which is currently F. And there’s a big worry here for investors where the EPS diluted growth forward looking is negative 11.03%, compared to the sector which is positive at 8.45%. This company obviously being under pressure for quite a while now.

Jumping over to the Profitability grade, which is A+, the net income margin still looks good, 4.04% compared to the sector, which is down about negative 0.5% there.

Jumping into Momentum, which is currently a C grade, the one year price performance of the stock not looking great by any means, down negative 40.69%. However, in the last three months, the stock is up 37.29%. So, maybe we’ve seen a little bit of stabilization here.

And lastly, the Revision is currently a C grade. Well, we have 12 up revisions and 12 down revisions for earnings per share over the last three months, and 7 up and 12 down revisions for revenue numbers over the last three months as well.

Now, this is a dividend paying stock kicking out a yield about 2.67% going forward. Dividend safety grade there is A+. Dividend growth is C. Dividend yield, B+. And dividend consistency, A-. Looking at the consistency, you’ll see that they have been growing their dividend for 15 years and paying for 23 years, something to note for all of you income oriented investors.

Now, that’s going to wrap it up for this episode. If you have a ticker you want us to cover, add it to the comment section below, and don’t forget to follow Seeking Alpha so you get notified of when the next 2 Minute Analysis gets published.

We are not advising you personally concerning the nature, potential, value, or suitability of any particular security. You alone are solely responsible for determining whether any investment, security, or strategy, or any product or service is appropriate or suitable for you based on your investment objectives and personal and financial situation.

This presentation is for informational purposes only. Content is presented as of the date published or indicated and may be superseded by future events. It represents my opinions, which may not reflect the views of Seeking Alpha as a whole.

Past performance is no guarantee of future results. Seeking Alpha is not a licensed securities dealer, broker, or US investment adviser, or investment bank.

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