#5 - UnitedHealth Group (NYSE:UNH)
Healthcare will continue to be one of the most investable sectors in 2023. And UnitedHealth Group (NYSE:UNH) is one of the largest players in this space. Contrarians would note that with the company’s size also comes a premium valuation. UnitedHealth Group carries the largest market cap in the sector at approximately $519 billion.
If you agreed with the thesis I laid out for NextEra Energy; you may find a similar bullish case is in play with UNH. The company’s core business remains health insurance. This ensures consistent, predictable income. Demand for healthcare is not going to go down, and the company is able to raise its premiums to both consumers and businesses.
But through its Optum Labs business unit, United Heath Group give investors exposure to health technology. Specifically, the company uses “cutting-edge analytic techniques” to measure health outcomes. This has led to the creation of value-based payment arrangements where providers are paid based on how well a patient does.
About UnitedHealth Group
UnitedHealth Group Incorporated operates as a diversified health care company in the United States. The company operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. 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 care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children's health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage.
Read More - Current Price
- $500.13
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $626.84 (25.3% Upside)
