Stock of the week: UnitedHealth Group

Stock of the week: UnitedHealth Group
Stock of the week: UnitedHealth Group

An interesting stock to follow this week is UnitedHealth Group. The results for the first quarter of 2024 reveal a resilient company in the face of significant challenges. The US health insurance company reported an $8 billion year-over-year increase in revenue, reaching $99.8 billion. Despite a cyberattack on Change Healthcare and currency fluctuations related to its operations in Brazil, UnitedHealth was able to provide more than $6 billion in advance financing and interest-free loans to support impacted healthcare providers.

The company’s adjusted earnings of $6.91 per share, which takes into account some impacts of the cyberattack, demonstrate strong profitability excluding one-time costs. UnitedHealth’s strategic investments in artificial intelligence infrastructure and vehicle financing programs underscore its commitment to long-term growth. With an outlook for adjusted net income of $27.50 to $28 per share for 2024, the company remains optimistic about its financial health.

The consensus from banking analysts is a “buy.” Of the 27 analysts covering the stock, 24 rate it a “buy”, three a “hold”, and no analysts recommend selling the stock.

The expected average share price increase for the next six to twelve months is currently 16.6% (closing price 05/06/2024).

To call on collective intelligence, UMushroom uses three reading keys in addition to the usual financial information to evaluate a stock: the opinion of banking analysts, the point of view of the professional press and that of other investors.

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