Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A- . The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, increase in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.
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Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- UNITEDHEALTH GROUP INC has improved earnings per share by 9.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, UNITEDHEALTH GROUP INC increased its bottom line by earning $4.72 versus $4.10 in the prior year. This year, the market expects an improvement in earnings ($5.05 versus $4.72).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Health Care Providers & Services industry average. The net income increased by 5.5% when compared to the same quarter one year prior, going from $1,267.00 million to $1,337.00 million.
- UNH's revenue growth trails the industry average of 26.1%. Since the same quarter one year prior, revenues slightly increased by 8.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
UnitedHealth Group Incorporated operates as a diversified health and well-being company in the United States. The company has a P/E ratio of 11.1, equal to the average health services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. UnitedHealth Group has a market cap of $56.4 billion and is part of the
industry. Shares are up 7.2% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.