UnitedHealth Group, Inc. (UNH, Financial)
As the largest private health insurance provider in the US, UnitedHealth has proven to be resilient to uncertain market environments. The company also has a top three pharmacy benefits manager with OptumRx. UnitedHealth’s integrated strategy has led to consistent performance with revenue growing every quarter for over 20 years now, including during the 2008 financial crisis and the COVID-19 pandemic. The company’s scale and integration also create cost advantages that make it hard for smaller competitors to take substantial market share. Analysts call for earnings per share of $18.57 for 2021 and $21.37 for 2022. Management is targeting 13%-16% earnings growth for the long term. UnitedHealth recently announced their plan to acquire Change Healthcare for $13 billion, which would strengthen their digital health capabilities.
From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management summer 2021 market commentary.
