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Why UnitedHealth Is Ready to Rebound

Monday - 3/4/2013, 4:44pm  ET

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, managed care provider UnitedHealth Group has earned a coveted five-star ranking.

With that in mind, let's take a closer look at UnitedHealth and see what CAPS investors are saying about the stock right now.

UnitedHealth facts

Headquarters (founded)

Minnetonka, Minn. (1974)

Market Cap

$54.9 billion

Industry

Managed health care

Trailing-12-Month Revenue

$110.6 billion

Management

CEO Stephen Hemsley (since 2006)
CFO David Wichmann (since 2011)

Return on Equity (average, past 3 years)

18.5%

Cash/Debt

$11.4 billion / $16.8 billion

Dividend Yield

1.6%

Competitors

Aetna
Humana
WellPoint

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 3,484 members who have rated UnitedHealth believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, ValueInvestor747, offered a cautiously bullish take on UnitedHealth:

A bit risky for me as I do not like an industry with such small margins and such a large amount of government regulation; that being said, [UnitedHealth] is the dominant player in the industry and past growth has been solid. I think any Medicare Advantage cuts will be more than offset by added customers under the PPACA. Additionally, acquisitions will be huge in years to come and as such a giant, [UnitedHealth] has a huge advantage. They are also expanding into the Medicaid realm, which will play out nicely when Obamacare kicks in.

Of course, that short pitch doesn't even come close to telling the entire story for UnitedHealth. You're in luck, though. The Fool's brand-new premium report on UnitedHealth looks at all sides of one of the most compelling health care plays in the market. You can grab your copy here, which comes with free updates for 12 months.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

This article was originally published as Why UnitedHealth Is Ready to Reboundon Fool.com

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