UnitedHealth Group: Strong Track Record Of Growth

Summary:

  • UnitedHealth Group Incorporated has rewarded its shareholders handsomely with a growing share price and a growing dividend.
  • You could do much worse than a 775% return over a decade.
  • Within this article, I’ll explain how sometimes a “boring” investment like UnitedHealth Group Incorporated can outperform ‘trendier’ investments, or even the market as a whole.

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Introduction

UnitedHealth Group Incorporated (NYSE:UNH) (“UHC”) is a major healthcare insurance company in the United States, serving over 26 million customers nationwide. UHC operates through several subsidiaries, including UnitedHealthcare, and Optum. UnitedHealthcare provides health insurance to individuals and businesses, while Optum

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Company Current Stock Price EPS 2023 Est. 2023 P/E
UNH $484 $24.95 19.4
(ELV) $480 $32.69 14.7
(HUM) $492 $28.01 17.6
(CNC) $76 $6.36 11.9
Average PE (excl. UNH) 14.7

Forward PE Comparison

Forward PE Comparison (Author’s Calculation and Analyst Expectations)

2023 2024 2025 2026 2027
Revenue $359,000 $386,000 $420,740 $458,607 $499,881
Net Income $23,312 $26,442 $28,822 $31,416 $34,243
Cash Flow $21,935 $23,584 $25,707 $28,020 $30,542


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Not financial advice.


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