UnitedHealth Group Inc (UNH): Today's Featured Health Services Underperformer

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.

UnitedHealth Group ( UNH) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day down 2.6%. By the end of trading, UnitedHealth Group fell $1.44 (-2.3%) to $61.59 on light volume. Throughout the day, 4.5 million shares of UnitedHealth Group exchanged hands as compared to its average daily volume of 6.5 million shares. The stock ranged in price between $61.58-$63 after having opened the day at $62.72 as compared to the previous trading day's close of $63.03. Other companies within the Health Services industry that declined today were: NeuroMetrix ( NURO), down 10.3%, Rochester Medical Corporation ( ROCM), down 10.2%, Staar Surgical ( STAA), down 9.4%, and Lakeland Industries ( LAKE), down 7.1%.
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UnitedHealth Group Incorporated operates as a diversified health and well-being company in the United States. UnitedHealth Group has a market cap of $64.55 billion and is part of the health care sector. The company has a P/E ratio of 11.9, below the S&P 500 P/E ratio of 17.7. Shares are up 16.2% year to date as of the close of trading on Friday. Currently there are 13 analysts that rate UnitedHealth Group a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates UnitedHealth Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health services industry could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health services industry could consider ProShares Ultra Short Health Care ( RXD).

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