CVS

UnitedHealth Group’s Long-Term Story Intact

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Image: UnitedHealth Group’s shares are facing pressure as the pace of medical procedures normalizes following COVID-19. We still like shares. By Brian Nelson, CFA On June 7, UnitedHealth Group (UNH) raised its quarterly dividend nearly 14%, to $1.88 per share, which reflects a forward estimated dividend yield of 1.65%. The company remains a staple in the Dividend Growth Newsletter portfolio and is a new add in the Best Ideas Newsletter portfolio. Recent comments by UNH’s John Rex on June 14 regarding the firm’s healthcare costs during the second quarter have put shares under pressure during the trading session. Discretionary surgeries have picked back up following a lull during most of the COVID-19 pandemic as hospital capacity was largely constrained during … Read more

FDA Accepts License Application for Vertex Pharma’s and CRISPR Therapeutics’ Key Investigational Treatment

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  Image: Vertex’s pipeline is impressive. We like its areas of focus and the progress it continues to make with key therapies in CRISPR and pain management. By Brian Nelson, CFA On June 8, it was announced that the Biologics License Applications (BLAs) for the investigational treatment exagamglogene autotemcel (exa-cel) for sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT) from two of our favorite speculative biotech entities Vertex Pharma (VRTX) and CRISPR Therapeutics (CRSP) have been accepted by the U.S. FDA. The submission received Priority Review for SCD, and exa-cel has the potential to be the first CRISPR gene-editing therapy to be approved. We continue to be huge fans of this technology and Vertex’s risk-adjusted exposure to the potential … Read more

Our Reports on the Health Care Bellwethers Industry

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Dividend Yield: Estimated on a forward-looking annualized basis. VBI: The Valuentum Buying Index, a timeliness indicator that overlays a price-to-fair-value estimate consideration. Fair Value Estimate: Derived by Valuentum’s enterprise valuation process. Dividend Cushion ratio: A ratio assessing the health of the dividend (the higher, the better). Data as of the date of this article. Individual company reports may have been updated subsequent to the publishing of this article, so please download a company’s stock and dividend report for its latest information and data. Note: The data in the tables of each of the below companies’ respective stock pages is updated the weekend after the publishing of this update. Please click on a company name below to view the corresponding equity … Read more

UnitedHealth Group Raises Guidance for 2023

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By Brian Nelson, CFA On April 14, UnitedHealth Group (UNH) reported first-quarter 2023 that beat the consensus estimates on both the top and bottom lines. Revenue advanced 14.7% in the quarter, while non-GAAP earnings per share of $6.26 beat the consensus number by $0.18, increasing from $5.49 per share in the prior-year period. The high end of the fair value estimate range of UnitedHealthGroup stands north of $600 per share, implying considerable valuation upside potential compared to where shares are trading at the time of this writing. Image: We view valuation as a range of probable fair value outcomes. The high end of the fair value estimate range for UnitedHealth Group stands north of $600. Shares are currently trading at … Read more

UnitedHealth Is A Free Cash Flow Powerhouse; Shares Yield ~1.3%

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Image Source: UnitedHealth Group By Brian Nelson, CFA UnitedHealth Group (UNH) is a holding in the Dividend Growth Newsletter portfolio, and it completed a fantastic 2022 when it reported its fourth-quarter results, released January 13. UnitedHealth Group is a free cash flow generating powerhouse. During 2022, the company hauled in $26.2 billion in cash flow from operations and spent just $2.8 billion on property, equipment, and capitalized software, good enough for $23.4 billion in free cash flow, materially higher than the $5.99 billion it paid in cash dividends over the same time. The Dividend Cushion ratio of UnitedHealth Group is a very healthy 3.5, and our valuation puts the high end of a fair value estimate range for shares of … Read more

The Fed ‘Can’t Stop, Won’t Stop’ Until Labor Market Feels More Pain

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  Image: Prices for private label brands at Aldi are considerably lower than those of branded products. The consumer staples sector, however, remains fully-priced with a 21+ forward earnings multiple, and many constituents hold large net debt positions. We believe the sticking point for the Fed is not groceries or gasoline prices, but rather the labor markets, which remain very strong, despite layoffs. Image Source: Valuentum By Brian Nelson, CFA We’ve yet to see the worst of job cuts, in our view. The rapid shift in the global economy mid-2022 was profound, as many companies were still building in anticipation of increased demand during the first half of the year to the point where demand growth started to dry up, … Read more

Exclusive Call: What To Expect From Valuentum in 2023

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Video: 2022 was a successful year by almost every measure from the simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio to the simulated High Yield Dividend Newsletter portfolio and Exclusive publication and beyond. There were some disappointments in 2022, of course, but the year showed the value of a Valuentum membership. Join President of Investment Research Brian Nelson on this year’s Exclusive conference call to learn what to expect from Valuentum in 2023. Cheers! Transcript President of Investment Research Brian Nelson: Happy Holidays everyone! I hope that you are enjoying this special time of year with family and friends, and I wish you all a wonderful 2023! I just wanted to take a few minutes to recap … Read more

Dollar General Resets Expectations; We’re Watching Free Cash Flows Closely

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Image Source: Valuentum By Brian Nelson, CFA On December 1, Dollar General Corp (DG) reported mixed third-quarter fiscal 2022 results where revenue came in slightly better than expectations on the back of same-store sales expansion of 6.8%, while GAAP earnings per share came up a bit short relative to the consensus estimate. Dollar General remains a “position” in the simulated Best Ideas Newsletter portfolio, and our fair value estimate stands at $250 per share. Many consumers are looking for ways to stretch their budgets in the current inflationary economic environment. That means cutting back on some discretionary items, but also looking for key deals across the retail landscape. Dollar General operates within a niche in the industry similar to the … Read more

UnitedHealth Group Sets Bar Low with Newly Issued 2023 Guidance; We Expect Upward Revisions Throughout the Year

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Image: UnitedHealth Group issued a strong outlook for 2023. We continue to like shares in the simulated Dividend Growth Newsletter portfolio. Image Source: UnitedHealth By Valuentum Analysts On November 28, UnitedHealth Group (UNH) reiterated its guidance for fiscal 2022 in advance of its 2022 Investor Conference and issued what we believe to be a conservative outlook for 2023. UnitedHealth Group operates two complementary businesses, Optum, which provides technology and data to health providers to offer guidance and tools, and UnitedHealthcare, which offers health benefits. The company is a key “position” in the simulated Dividend Growth Newsletter portfolio and yields ~1.2% at the time of this writing. When UnitedHealth Group reported third-quarter 2022 results October 14, “Dividend Growth Idea UnitedHealth Outperforming,” … Read more

2022 Showcased the Value of a Valuentum Membership

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In bull markets, almost everyone is a winner. But 2022 was different. This year was a big test for Valuentum, and we passed with flying colors. We delivered across the board during the year from ideas in the Exclusive publication and the efficacy of the dividend growth methodology to the resilience of high yield ideas and simulated Best Ideas Newsletter portfolio relative performance–despite setbacks from Meta Platforms, PayPal, and beyond. Tune in to the latest video installment from Valuentum. Thanks for listening! Tickerized for holdings in the SPY. ——————————————— About Our Name But how, you will ask, does one decide what [stocks are] “attractive”? Most analysts feel they must choose between two approaches customarily thought to be in opposition: “value” … Read more