Trade-Ideas: UnitedHealth Group (UNH) Is Today's Pre-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified UnitedHealth Group ( UNH) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified UnitedHealth Group as such a stock due to the following factors:

  • UNH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $334.9 million.
  • UNH traded 22,460 shares today in the pre-market hours as of 8:43 AM.
  • UNH is up 3.4% today from yesterday's close.

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More details on UNH:

UnitedHealth Group Incorporated operates as a diversified health and well-being company in the United States. The stock currently has a dividend yield of 1.7%. UNH has a PE ratio of 13.2. Currently there are 15 analysts that rate UnitedHealth Group a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for UnitedHealth Group has been 5.2 million shares per day over the past 30 days. UnitedHealth Group has a market cap of $69.0 billion and is part of the health care sector and health services industry. The stock has a beta of 0.54 and a short float of 1.2% with 2.42 days to cover. Shares are up 23.4% year to date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant 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, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.7%. Since the same quarter one year prior, revenues rose by 11.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that UNH's debt-to-equity ratio is low, the quick ratio, which is currently 0.69, displays a potential problem in covering short-term cash needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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's earnings per share declined by 11.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UNITEDHEALTH GROUP INC increased its bottom line by earning $5.28 versus $4.72 in the prior year. This year, the market expects an improvement in earnings ($5.42 versus $5.28).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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