Trade-Ideas: UnitedHealth Group (UNH) Is Today's New Lifetime High 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 new lifetime high 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 $469.3 million.
  • UNH has traded 3.9 million shares today.
  • UNH is trading at a new lifetime high.

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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 1.6%. UNH has a PE ratio of 13.6. 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 5.4 million shares per day over the past 30 days. UnitedHealth Group has a market cap of $72.9 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 1.84 days to cover. Shares are up 33.1% year to date as of the close of trading on Monday.

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 solid stock price performance, growth in earnings per share, revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • Compared to where it was 12 months ago, this stock has enjoyed a nice rise of 25.19% which was in line with the performance of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, UNH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • UNITEDHEALTH GROUP INC has improved earnings per share by 10.2% 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 $5.28 versus $4.72 in the prior year. This year, the market expects an improvement in earnings ($5.45 versus $5.28).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 16.2%. Since the same quarter one year prior, revenues rose by 11.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.53, 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 0.52, displays a potential problem in covering short-term cash needs.

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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