Unitedhealth Group - World's largest managed healthcare provider (BUY - 340)

UnitedHealth Group Incorporated operates as a diversified health care company in the United States. It operates through four segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx.

The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health and well-being services to individuals age 50 and older, addressing their needs for preventive and acute health care services, as well as services dealing with chronic disease and other specialized issues for older individuals; and Medicaid plans, Children’s Health Insurance Program, and health care programs; and health and dental benefits.

The OptumHealth segment provides access to networks of care provider specialists, health management services, care delivery, consumer engagement, and financial services. This segment serves individuals through programs offered by employers, payers, government entities, and directly with the care delivery systems. The OptumInsight segment offers software and information products, advisory consulting arrangements, and services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations.

The OptumRx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and compounding pharmacy, and purchasing and clinical, as well as develops programs in areas, such as step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was incorporated in 1977 and is based in Minnetonka, Minnesota.

Share price, revenues, EBITDA, EV/EBITDA, EV/Sales


Unitedhealth group, being the largest managed healthcare company in the world by revenue boasts an almost monopolistic position in the U.S. in healthcare industry.

Its stock has been performing consistently strong, and is particularly sensitive to legislation in the U.S. concerning the private healthcare industry.

Concerns surrounding Trump's re-election, and potential democratic candidates, whose policy is more target towards state-involvement and less on private-sector healthcare - contributed to volatility in 2019.

Public polling has suggested that Trump is going to be re-elected, based on historical precedent, which implies that presidents during bull-markets sit a second-term. 

The stock has stabilised since, and is on a trajectory higher.

Current analyst-estimates suggest that EBITDA is set to rise the following years;
We therefore give Unitedhealth a STRONG BUY recommendation with a target price of 340$ until Q2 of 2020.