NEW YORK (TheStreet) -- Shares of UnitedHealth Group Inc (UNH) were higher by 3.35% to $123.16 Thursday afternoon, along with other health insurers and hospital stocks after the U.S. Supreme Court upheld subsidies for individuals under President Barack Obama's signature healthcare law, according to Reuters.
The court ruled 6-3 that the 2010 Affordable Care Act, also known as Obamacare, did not limit subsidies to states that have their own online healthcare exchanges, Reuters added.
"Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them," Chief Justice Roberts wrote for the court.
Out of the 10 million Americans who have insurance through the healthcare law's insurance exchanges, about 6.4 million could have lost their credits for healthcare if the Supreme Court ruled against the ACA.
Hopkins, MN-based UnitedHealth Group is a diversified health and well-being company that engages in enabling technology and clinical care management.
Separately, TheStreet Ratings team rates UNITEDHEALTH GROUP INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITEDHEALTH GROUP INC (UNH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins."