UnitedHealth Group (UNH) is the best Dow Jones stock Tuesday after the health insurance giant topped analysts' expectations for its second quarter.
In the three months ended June 30, UnitedHealth's revenue increased 6.4% year-over-year to $98.9 billion, thanks in part to a 6.1% rise in premiums to $76.9 billion. UNH's earnings per share (EPS) were up 10.7% from the year-ago period to $6.80.
These results "reflect diversified and durable growth, and a commitment to ensuring high quality care is available to every person we are privileged to serve," UnitedHealth CEO Andrew Witty said on the company's conference call. "In the first half of the year, revenues grew by nearly $14 billion, with strong contributions from across the enterprise, led by double-digit growth at Optum. UnitedHealth Group enters the second half of the year with continuing and broad-based growth momentum."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
UnitedHealth's top- and bottom-line results came in ahead of analysts' expectations. According to Yahoo Finance, Wall Street was anticipating revenue of $98.8 billion and earnings of $6.66 per share.
The company also said that the total number of people served by its domestic commercial offerings increased 8.8% year-over-year to 29.6 million, while the total number of people served by its Medicare Advantage plans was up 2.3% to 7.8 million.
As a result of its performance in the first half of the year, UnitedHealth affirmed its full-year outlook, which calls for EPS to arrive between $27.50 to $28 – a range that satisfies analysts' expectations for earnings of $27.59 per share.
Should investors buy UnitedHealth after earnings?
While the decision on whether investors should buy UNH stock after earnings is ultimately their own and dependent upon their personal goals, Wall Street is overwhelmingly bullish toward the blue chip stock.
According to S&P Global Market Intelligence, the average analyst target price for UNH is $576.35, representing implied upside of nearly 6% to current levels. Additionally, of the 28 analysts that cover the stock, 19 rate it a Strong Buy, eight rate it a Buy and one rates it a Hold. This works out to a consensus recommendation of a Strong Buy.
Speaking for the bulls is Truist Securities analyst David MacDonald, who has a Buy rating and $600 price target on UNH. Thanks to strong cash flow generation and meaningful financial flexibility, MacDonald expects "the company's strong financial footing to continue to drive a virtuous cycle of fueling ongoing growth investment in the core business, expansion of capabilities, M&A and shareholder value creation."
Related Content
-
Selling Your Haunted House? What You Have to Tell Buyers (and What You Don’t)You don’t need ghosts to spook buyers, sometimes a home’s past is enough. Here’s what sellers should know about disclosure laws, pricing and perception when a property has a haunted history.
-
CMS Brings Back Furloughed Staff for Open Enrollment LifelineThe government has recalled approximately 3,000 workers to assist with Medicare and ACA Marketplace Open Enrollment.
-
Targa Resources, Take-Two Interactive, Boston Scientific: Why Experts Rate These Stocks at Strong BuyWall Street is highly bullish on these three high-quality stocks.
-
Debunking Three Myths About Defined Outcome ETFs (aka Buffered ETFs)Defined outcome ETFs offer a middle ground between traditional equity and fixed-income investments, helping provide downside protection and upside participation.
-
This Is Why Judge Judy Says Details Are Important in Contracts: This Contract Had HolesA couple's disastrous experience with reclaimed wood flooring led to safety hazards and a lesson in the critical importance of detailed contracts.
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market TodayApple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
-
A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and AroundIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
-
To Reap the Full Benefits of Tax-Loss Harvesting, Consider This Investment Strategist's StepsTax-loss harvesting can offer more advantages for investors than tax relief. Over the long term, it can potentially help you maintain a robust portfolio and build wealth.
-
Social Security Wisdom From a Financial Adviser Receiving Benefits HimselfYou don't know what you don't know, and with Social Security, that can be a costly problem for retirees — one that can last a lifetime.
