Trade-Ideas: UnitedHealth Group (UNH) Is Today's Pre-Market Laggard 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 laggard 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 $302.6 million.
  • UNH traded 131,852 shares today in the pre-market hours as of 9:08 AM.
  • UNH is down 4.9% today from Friday'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 1.5%. UNH has a PE ratio of 13.8. 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 4.3 million shares per day over the past 30 days. UnitedHealth Group has a market cap of $73.5 billion and is part of the health care sector and health services industry. The stock has a beta of 0.57 and a short float of 1.5% with 3.45 days to cover. Shares are up 33.3% year to date as of the close of trading on Friday.

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, solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures 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:
  • UNH's revenue growth has slightly outpaced the industry average of 3.9%. 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.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 29.53% over the past year, a rise that has exceeded that 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 ($5.50 versus $5.28).
  • 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 0.64, displays a potential problem in covering short-term cash needs.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Providers & Services industry and the overall market, UNITEDHEALTH GROUP INC's return on equity exceeds that of both the industry average and the S&P 500.

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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