To The Moon

My 5th post to Tiger_chat 's question of whether an investor profits from a good company or a good price ?

To that I have asked, "why not both" ?

Wouldn't that have more upside comparatively speaking ?

Let's take a look at Non-Bank stock $UnitedHealth(UNH)$ for a change. Its Q4 2022 earnings and whether it fits the bill.

I have posted on United Health (30 Dec 2022) as part of my portfolio diversification homework.

Click here to read if interested. That post covered UNH's basics.

Sidetrack: So far, I have covered 4 banks (Jefferies, Wells Fargo, JP Morgan & Citibank) to test out my theory.

• $Citigroup(C)$ -  interested?  click here to read. Pls give a "Like". Tks. 
• $JPMorgan Chase(JPM)$ - interested ? click here to read. Give a "Like" ok. Tks. 
• $Wells Fargo(WFC)$ - interested ? click here to read.  Pls give a "Like". Tks.
• $Jefferies Financial Group Inc.(JEF)$  - interested ? click here to read. Give a "Like" ok. Tks. 

• An American multinational managed healthcare and insurance company
• Founded in 1977
• Its a mega Cap company; standing at $457.43 Billion.
• Very stable, not at all volatile. Beta coefficient is only 0.73.
• Nice dividend at $6.60 per share. Gotta love this no ?
• Healthy trading volume.
• Healthy Revenue and Net Income.
• Only thing that is not so nice is the stock price. At US$489.57 per stock, will need to have a deep pocket.
• Became a main component stocks in Dow Jones Industrial Average index on 12 Sep 2012; displacing Kraft Food Inc.
• Grew to its current size via strategic merger and acquisitions.

In 2022, a year where US market has been hammered by extremely volatility - how did UnitedHealth Group fare ?

Current stock price > 18 Jan 2022 stock price by +6.20% - Super !

UnitedHealth Group - Summary

• Total revenues were $82.7 Billion vs $73.7 Billion (Q4 2021) vs $80.9 Billion (Q3 2022).
• Net Income attributable to UNH common shareholders were $4.7 Billion vs $4 billion (Q4 2021). Its a healthy +17.5% growth.

UnitedHealth Group - earnings per share

• Earnings per (eps) share came in at $5.34 per share vs market expectations of $5.17.
• Compared to Q4 2021's eps of $$4.48 per share, it's a +19.20% gain, YoY.

UNH - Revenue by Business

• As mentioned in UNH's profile, UnitedHealth Group grew to its present size via M&A.
• When it comes to UNH's revenue, it comes from both UnitedHealth Care and Optum

UNH - Other info

• In the Healthcare industry where customer serving activities is a key indicator of business health, this is no exceptions for UNH.
•  Its Q4 2022 Domestic medical of 46.3 Million customers served is a +0.87% gain compared to Q3 2022.
• Similarly, Total medical of  51.6 Million customers served is a +0.58% gain compared to Q3 2022.
• Lastly, OptumHealth of 102 Million customers served is a +0.99% gain compared to Q3 2022. 

UnitedHealth Group's CEO on Q4 2022 Results:.

The strength of our performance reflects the diligence & determination of our colleagues to improve people's experience across the health care system and make high-quality care simpler, more accessible and more affordable... Andrew Witty, CEO, UnitedHealth Group

.

Why UnitedHealth Group is Both A Good Price and Good Company ?

• HealthCare stocks are non-cyclical in nature unlike semiconductors, construction, retail etc..
• With rising healthcare costs and interest rates forecasted to continue rising to the 5% terminal rate banding means more revenue "potentially" to be earned by the Health sector
• With a generous annual dividend of $6.60 per share (1.35% to current stock price), what is there not to like.  $Meta Platforms, Inc.(META)$ - Nodividends. $Tesla Motors(TSLA)$ -Nodividends.
• The world is fast becoming a "Silver" society especially in the Asia region.  
• The Silver economy cannot be ignored any longer.
• Even Amazon is branching into the Healthcare sector with the acquistion of One Medical in Nov 2022 and in negotiation process of acquiring Signify Health.
• Surely there must be some value proposition in order for Amazon to pivot into Healthcare sector as well no ?

• Do you think it will be a strategic move to invest in Healthcare for mid to long term ?
• Do you think UnitedHealth Group is both a Good price and Good company ?

Please "LIKe" this post.  Thanks.  The rating is very important to me.

@TigerStars 

@CaptainTiger 

@MillionaireTiger 

@Daily_Discussion 

@Tiger_SG 

@TigerPM