Here’s how much a $ 1,000 investment in UnitedHealth Group made 10 years ago would be worth today – May 17, 2021
The extent to which the price of a stock changes over time is an important factor for most investors. Not only can price performance impact your portfolio, it can also help you compare investment results across sectors and industries.
Fear of Missing Out, or FOMO, also plays a role in investing, especially with particular tech giants, as well as popular actions aimed at consumers.
What if you had invested in UnitedHealth Group (A H – Free report) ten years ago? It might not have been easy to hold onto the UNH all this time, but if it was, how much would your investment be worth today?
UnitedHealth Group activities in depth
With that in mind, let’s take a look at the main business drivers of UnitedHealth Group.
UnitedHealth Group, Inc. offers a wide range of healthcare products and services, such as Healthcare Maintenance Organizations (HMOs), Point of Service (POS) Plans, Preferred Provider Organizations (PPO) and managed fee-for-service programs.
UnitedHealth has the largest and most diverse member base in the managed care organization market, giving it significant competitive advantages. It also developed its prescription drugs business through the OptumRx division, with the acquisition of Catamaran in 2015.
The company has acquired a number of competing healthcare providers. These acquisitions have transformed it from a pure health insurer to a comprehensive health care provider.
UnitedHealth reports on two segments: UnitedHealthcare and Optum. Its strategy is to merge the medical care delivery of its Optum unit with UnitedHealthcare branded insurance products, which assist in the cross-selling of products and services.
UnitedHealthcare (which contributed approximately 63% of revenue in 2020) is divided into UnitedHealthcare Employer & Individual; UnitedHealthcare Medicare & Retirement; UnitedHealthcare Community & State and UnitedHealthcare Global.
Optum (47%) is a technology-based health services company serving the broad health care market, including those in need of care: consumers who need support, information, resources and advice. suitable products; those who provide care: pharmacies, hospitals, doctors, surgeries and other health care establishments.
In the fourth quarter of 2020, the company made deals to acquire several companies, which are expected to close in the first half of 2021. Additionally, in January 2021, it made deals to buy several companies in the healthcare sector, most of them including , Change Healthcare. This acquisition is expected to be finalized in the second half of 2021. The total capital required for these acquisitions is nearly $ 13 billion.
At the end of the line
Anyone can invest, but building a successful investment portfolio takes research, patience, and a bit of risk. So if you had invested in UnitedHealth Group ten years ago, you are probably feeling pretty good about your investment today.
An investment of $ 1,000 made in May 2011 would be worth $ 8,204.20, or a gain of 720.42%, as of May 17, 2021, according to our calculations. This yield excludes dividends but includes price appreciation.
The S&P 500 rose 212% and the price of gold rose 19.31% over the same period in comparison.
Looking ahead, analysts expect more benefits for UNH.
Shares of UnitedHealth outperformed its industry in a year. The action saw Zacks’ consensus estimate for current year earnings revised 2% upward in the past 30 days. The top line is strengthened by new offers, renewed agreements and an expansion of service offerings. Its many acquisitions are a good omen. Its strong health services segment offers significant diversification benefits. It remains well positioned to profit from its government activities. A strong balance sheet and consistent cash flow generation are further positive points, which have led to a strong financial position. This allows the company to make share buybacks and pay dividends. Strong outlook for 2021 is fueling investor optimism on the stock. However, the company is experiencing a slowdown in international and commercial activities.
In the past four weeks, stocks have risen 5.07% and there have been 8 higher revisions to earnings estimates in the past two months for fiscal 2021, compared to none lower. The consensus estimate has also increased.