United Health's most recent trend suggests a bullish bias. One trading opportunity on United Health is a Bull Put Spread using a strike $295.00 short put and a strike $290.00 long put offers a potential 15.21% return on risk over the next 3 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $295.00 by expiration. The full premium credit of $0.66 would be kept by the premium seller. The risk of $4.34 would be incurred if the stock dropped below the $290.00 long put strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for United Health is bullish and the probability of a rise in share price is higher if the stock starts trending.
The 20-day moving average is moving up which suggests that the medium-term momentum for United Health is bullish.
The RSI indicator is at 60.75 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for United Health
Visa, UnitedHealth, Fiserv, TransDigm, Monolithic Power: Give These 5 Leaders A Long Look
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Long-Term Leaders stabilize your portfolio and offer stellar long-term growth. Visa, UnitedHealth, Fiserv, TransDigm and Monolithic Power are setting up.
Andreas Halvorsen's Top 5 Buys in the 4th Quarter
Fri, 14 Feb 2020 20:29:43 +0000
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Up 900%, Teladoc Stock Still Has Tremendous Upside Ahead
Fri, 14 Feb 2020 19:10:34 +0000
Investors might be tempted to take profits in Teladoc Health (NYSE:TDOC). After all, TDOC stock has gained 900% from its 2016 lows. And it certainly looks expensive. The provider of virtual healthcare services now has a market capitalization over $8 billion.Source: Piotr Swat / Shutterstock.com Yet Teladoc isn't profitable, and likely won't be until 2022. Shares trade at a whopping 11x next year's revenue estimates.But the stock shouldn't be cheap. It provides a long-term opportunity for growth that few companies in this market can match. Most, if not all, of those companies have been huge winners. Electric vehicle growth has driven Tesla (NASDAQ:TSLA) to stunning levels. Shopify (NYSE:SHOP) has been perhaps the market's best stock over the past year.InvestorPlace – Stock Market News, Stock Advice & Trading TipsThose companies, too, faced valuation concerns — and short sellers. Indeed, roughly 30% of TDOC stock is sold short at the moment. * 7 Earnings Reports to Watch Next Week Investors have been best-served, however, by ignoring the shorts and even Wall Street. Growth has trumped valuation at every turn in this bull market. Teladoc's growth is going to be explosive. The Telehealth OpportunityUnsurprisingly, Teladoc Health has jumped out to an early lead in telehealth. The company, after all, was founded by veterans of the National Aeronautics and Space Administration after that agency pioneered remote health services for astronauts at the International Space Station.Since its founding in 2002, Teladoc has become the unquestioned leader in telehealth. Its market share reportedly sits near 75%. The company offers some 450 medical subspecialties, and completed 2.6 million visits worldwide in 2018. That latter figure should rise over 50% in 2019, based on current company's guidance.Teladoc's customers already include health insurance providers like Aetna (NYSE:AET), UnitedHealth (NYSE:UHC) and several Blue Cross Blue Shield companies. Bank of America (NYSE:BAC) and General Mills (NYSE:GIS) headline the company's roster of employers.Teladoc clearly has the "first mover advantage" in telehealth. And it's going to be a fast-growing market.Younger millennial consumers won't want to visit a doctor's office any more than they want to visit a brick-and-mortar retailer. They can virtually visit a doctor on the Teladoc app in a median time of just ten minutes.Rural patients face long driving distances and/or a lack of specialized providers. Telehealth can be a literal lifesaver for them.Even our company's mental health crisis could be ameliorated via telemedicine. Simply put, Teladoc's service can deliver better care to more patients in a more efficient and cost-effective manner. Is TDOC Stock Too Expensive?Again, Teladoc Health isn't cheap. That might worry some investors. But the company has plenty of room to grow into — and beyond — the current valuation.After all, the potential market here is enormous. Back in 2017, Teladoc Health estimated its addressable market in the U.S. at $29 billion.That was before the company acquired Advance Medical in 2018, which helped expand the company worldwide. As of the end of 2018, Teladoc operated in over 130 countries and more than 20 languages, according to its Form 10-K filed with the U.S. Securities and Exchange Commission.Revenue for 2020 is likely to be less than $700 million. That in turn suggests Teladoc has penetrated less than 3% of its potential market just in the U.S. As the company noted in a presentation last month, there are 75 million potential users as current U.S. clients. Teladoc's total user base at the moment is just 54 million.If the U.S. market is $30 billion and the global market $50 billion or more, what happens if Teladoc holds even 30% market share? Or 60%?In either scenario, an $8 billion market value won't look "expensive" in retrospect. It will look like a gift. Stick With the WinnerI've been recommending Teladoc Health going back to 2018. All that has changed since then is its valuation. TDOC stock has gained 68% since mid-2018.But I believe the company, and the stock, are just getting started. There are few better opportunities out there, where an investor can own the unchallenged leader in an industry with decades of growth ahead.Tesla is one. Shopify another. Those stocks have risen by multiples of their former share prices — and faced valuation concerns the entire way. TDOC stock has risen nicely, but it hasn't seen that explosive upside yet.But it will at some point, as long as Teladoc keeps executing.Matthew McCall left Wall Street to actually help investors — by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Up 900%, Teladoc Stock Still Has Tremendous Upside Ahead appeared first on InvestorPlace.
UnitedHealth (UNH) Up 0.5% Since Last Earnings Report: Can It Continue?
Fri, 14 Feb 2020 16:30:04 +0000
UnitedHealth (UNH) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Income and Growth Investors Will Benefit as CVS Adopts Managed Care
Fri, 14 Feb 2020 11:30:50 +0000
It's never easy to marry companies that seem to exist in different industries. This is especially true if a buyer is on what looks like the "failing" side of the equation.Source: Jonathan Weiss / Shutterstock.com That's the case for CVS Health (NYSE:CVS).Net income of $1.7 billion, $1.73 per share, on revenue of $66.9 billion beat analyst estimates by 5 cents per share. Those numbers even beat the company's own projections.InvestorPlace – Stock Market News, Stock Advice & Trading TipsThis didn't cause investors to rush into the stock. That's because results from other health insurers, most notably UnitedHealth Group (NYSE:UNH), looked better. The jury is still out, one reporter wrote, on whether combining a company that takes healthcare premiums with one that sells healthcare services makes sense.No, it isn't. Could be WalgreensDon't compare CVS to UNH, which has been walking down the managed care road for years, or Centene (NYSE:CNC), built to serve Medicare and Medicaid patients. Compare it to Walgreens Boots Alliance (NASDAQ:WBA), the other major drug store chain. * 20 Stocks to Buy From the Law of Accelerating Returns There's no comparison. Over the last year CVS stock is up 8.6%, mid-way between the gains of UNH and CNC. Walgreens is down 25.1%.Cynics will say CVS' results only looked good because it sold more drugs and charged higher prices for branded drugs. They will say CVS only bought Aetna, a major health insurer, for $69 billion to lower its costs.But CVS didn't buy Aetna to lower drug costs. CVS bought Aetna so it could match the income from premiums to the outgo of healthcare spending. The income is now starting to flow. Revenue for the entire company was up 32% over a year ago, representing Aetna premiums. The shift of claims into CVS is still ongoing.There are other benefits to CVS from getting into insurance. The repeal of the Health Insurance Fee (HIF) will flow through to CVS, through Aetna. More to ComeWhat remains to be seen is how competitive Aetna can be, now that more benefits are being served through CVS stores. CVS MinuteClinics can now handle 80% of what a primary care physician can treat, often with no copay or reduced costs.CVS is building on that by turning 1,500 stores into HeathHUBs, selling services as well as products. The plan is for the new stores to add incremental business from Walgreens. It also makes Aetna more attractive, by lowering out-of-pocket costs. Stores that have converted to the new format outperform traditional CVS stores, the company said on its conference call.CVS is now projecting earnings between $7.04 and $7.17 per share in 2020. Based on the stock's Feb. 13 opening price of $73.45, that's a forward price-to-earnings ratio of barely 10. The 50 cent per share dividend also pays a yield of 2.7%. By way of comparison, the yield on UNH is 1.5%. The Bottom Line on CVS StockIt's true that CVS is trying to become more like UnitedHealth. It's becoming less like Walgreens. CVS is aiming to be a low-cost leader in managed care for the private insurance market.That's good news for both income and growth investors.For income investors, you're already getting a better yield on a new CVS investment than on any managed care stock. For growth investors, you are still getting in early on the transition.Managed care is the model for all insurers going forward. This is true whether they're taking money from government, corporations or individuals. You can't have an unlimited draw from a limited pool of funds. That's the road CVS Health has embarked on.Dana Blankenhorn is a financial and technology journalist. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Follow him on Twitter at @danablankenhorn. As of this writing he owned shares in CVS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 20 Stocks to Buy From the Law of Accelerating Returns * 10 Strong Lottery Ticket Stocks That Could Soar in 2020 * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Income and Growth Investors Will Benefit as CVS Adopts Managed Care appeared first on InvestorPlace.
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