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UnitedHealth: 11 Reasons to Buy
01/02/2017 7:00 am EST
Our newest recommendation offers consumer-oriented health benefit plans and services for a wide range of customers, explains Nicholas Vardy, editor of Vardy's Alpha Algorithm.
UnitedHealth Group (UNH) also provides Medicaid plans, health care programs and health services through a network of one million physicians and healthcare professionals at some 6,000 hospitals and other facilities.
Eleven top investment strategies are currently betting on UnitedHealth Group:
1. Fundamental Strength
A top U.S. stock based on fundamentals measured by book value, cash flow and sales dividends.
2. Insider and Analyst Sentiment
One of 100 top stocks out of 5,000 U.S stocks where corporate insiders (a director or senior officer of a company, or any person or entity that owns more than 10% of the company’s stock) are buying the stock and Wall Street analysts have recently increased earnings estimates.
3. Pure Growth
The company is part of a strategy that selects companies from the S&P 500 Index, based on three growth factors: current internal growth rate, historical earnings per share (EPS) growth and historical sales/share growth.
4. Capital Strength
The stock is part of a strategy that seeks to outperform the market by selecting companies based on the strength of their balance sheets, long-term debt ratios and return on assets (ROA).
5. Large-Cap Alpha Growth
The company has been chosen as part of an alpha-seeking index that selects and weights growth stocks from the S&P 500 Growth Index. The proprietary methodology uses price appreciation -- among more traditional factors -- and weights the constituents based on their respective growth scores.
6. Large-Cap Alpha Core
The stock is one of a tiered, equal-weighted index of large-cap stocks selected from the S&P 500 and expected to outperform the broader large-cap space based on an intricate methodology of ranking stocks according to their recent performance.
7. Large-Cap Growth
The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.
8. Large-Cap Momentum
The stock is part of a major hedge fund’s systematic strategy that invests in large- and mid-cap U.S. companies with positive momentum and that rank in the top third of total return over the prior 12 months, excluding the last month.
9. Momentum Factor
The stock also is one of the top 120 large- and mid-cap U.S. stocks exhibiting relatively higher price momentum, as measured by a specific factor which historically has driven a significant part of companies’ risk and return.
10. Small-Cap/Value Tilt
Selected using a multi-factor modeling approach, the stock is a smaller-cap or value investment designed to enhance portfolio risk/return characteristics.
11. Goldman Sachs’ Active Beta
The stock is selected according to four factors -- value, quality, momentum and low volatility. These, in turn, are based on criteria including book value, sales and cash flow scaled by share price, profit/assets or return on equity, risk-adjusted returns and daily standard deviation of returns.
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