1D·

New Buy - $UNH

UnitedHealth is the largest health insurance provider in the US, a company that has had a great track record over the last years, continually increasing revenue and profit with very few exceptions. So what’s causing the massive selloff of more than 20%? When $UNH reported earnings most figures where within expectations. Yes, the EPS estimate was missed by a percent or so, but does that realistically justify a 20% decline in the stock? I don’t think so, even with reduced expectations for the year (who can blame them in the current market situation), I remain extremely bullish on this company currently trading at a forward P/E ratio of 17 and expected growth of around 10%. This could be a great opportunity to open a position in this industry-leading company, after a in my opinion massively overblown selloff.

17.04

UnitedHealth

Compró 13 a 395,00 €

5135,00 €

4 Comentarios

Soprano@Soprano

22H

The problem is that the outlook has been drastically lowered (more than 10% below expectations) and this is due to high costs. Costs are something that are much more likely to occur than revenues.

At UNH, many had hoped that they, who are zero affected by tariffs etc., would give good forecasts.

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Konstantin Harrer@MozartTrading

21H

@Soprano Even if you cut expectations by 10%, I think the 25% drop in the share price is a massive exaggeration.

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Soprano@Soprano

21H

@MozartTrading If it stays that way, it's certainly right. But it is also possible that there will be more bad news in the next quarterly figures. If the forecasts are unexpectedly bad, the market always fears that the next forecasts will contain another surprise.

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Konstantin Harrer@MozartTrading

@Soprano I think that even if the figures are bad again, we have already fulfilled some of the downside potential and in the longer term Medicare costs should level off again.

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