Shares of UnitedHealth Group (NYSE: UNH) had been leaping 5.7% increased as of 11:17 a.m. ET on Tuesday after rising as a lot as 7.7% earlier within the day. The stable achieve got here after the enormous healthcare firm introduced its 2024 first-quarter outcomes earlier than the market opened.
What did traders like about UnitedHealth Group’s Q1 replace?
UnitedHealth Group reported Q1 income of $99.8 billion, up 8.6% yr over yr. This outcome topped the consensus Wall Road income estimate of almost $99.3 billion.
The corporate posted a web lack of $1.22 billion, or $1.53 per share, within the first quarter primarily based on generally accepted accounting principles (GAAP). This loss mirrored a steep decline from the revenue of $5.8 billion, or $5.95 per share, reported within the prior-year interval.
Nonetheless, the 2024 Q1 loss stemmed from the affect of a cyberattack on Change Healthcare, which UnitedHealth Group acquired in 2022. UnitedHealth’s Q1 adjusted earnings per share was $6.91, up from $6.26 in the identical quarter final yr. This adjusted earnings determine simply beat the common analysts’ estimate of $6.61.
Is UnitedHealth Group inventory a purchase?
I do not suppose UnitedHealth Group inventory is an effective choose due to its Q1 numbers. Nonetheless, I do view the inventory as a purchase for different causes.
Most significantly, the corporate’s medical health insurance enterprise and different healthcare items ought to have sturdy long-term development prospects because the variety of older Individuals will increase. I additionally like UnitedHealth’s valuation. Shares at present commerce at a forward price-to-earnings ratio of 16 — a lot decrease than the S&P 500‘s ahead earnings a number of of almost 20.8.
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Keith Speights has no place in any of the shares talked about. The Motley Idiot recommends UnitedHealth Group. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
