Last year, UnitedHealth Group (NYSE: UNH) faced a series of headwinds that weighed on the stock, dragging it down 34%. The biggest U.S. health insurer saw earnings suffer as it underestimated the cost and use of services, and the company unexpectedly lost its chief executive officer. Investors also grew more cautious as the Justice Department launched a probe into the insurer's Medicare Advantage operations.
But, UnitedHealth launched a series of steps to turn things around, and the plan is bearing fruit. Longtime CEO Stephen Hemsley returned to the leadership role, the company completed an independent audit of its practices and put into place new actions where needed, and earnings are improving. As a result, investors have returned to the stock. It climbed 25% in the first half, for the biggest gain by a mega-cap healthcare stock in the S&P 500.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Is it now too late to buy UnitedHealth stock? Let's find out.
First, let's take a look back at the path of UnitedHealth over the past year. As mentioned, the company faced several challenges. And the biggest may have been the earnings situation. UnitedHealth underestimated the utilization levels of healthcare amid an environment of rising costs, and these factors hurt growth.
But, UnitedHealth launched a series of steps to turn things around, and the plan is bearing fruit. Longtime CEO Stephen Hemsley returned to the leadership role, the company completed an independent audit of its practices and put into place new actions where needed, and earnings are improving. As a result, investors have returned to the stock. It climbed 25% in the first half, for the biggest gain by a mega-cap healthcare stock in the S&P 500.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Is it now too late to buy UnitedHealth stock? Let's find out.
First, let's take a look back at the path of UnitedHealth over the past year. As mentioned, the company faced several challenges. And the biggest may have been the earnings situation. UnitedHealth underestimated the utilization levels of healthcare amid an environment of rising costs, and these factors hurt growth.
2 months ago
