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UNH STOCK WRITE UP


UNH (UNITED HEALTHCARE)

  • P/E: 23.2
  • GAAP DILUTED EPS GROWTH Q4 '15 TO Q4 '16: $.71
  • SECTOR: HEALTH SERVICES
  • ASSETS-LIABILITIES: 2.54
  • DIVIDEND: 1.52%
In 2015, UNH was the largest provider of health insurance in the United States of America. Unless the United States develops a national health insurance plan like many other nations of the world, health insurance will continue to be a booming business. People can not do without health insurance, or they will be forced to pay astronomical out-of-pocket costs. United Healthcare has shown itself to be the strongest company in the sector.
The healthcare industry is set to change under President Trump. Healthcare will no longer be mandatory. Medicaid expansion, although opposed by the new leadership, will remain in place until 2020 due to laws already passed by the previous administration. People without healthcare through employment will be offered tax credits based on income and other factors in order to obtain health insurance. Health insurance companies will now be allowed to set their own prices.
UNH has cut their recent costs with respect to providing services. Therefore, the new ability to increase prices will allow them to set their prices at a competitive rate, and collect income through their already massive consumer base and large profit margin. From Q4 '15 to Q4 '16, the company saw just a 9% revenue growth, with an astounding 56% growth in net earnings. This impressive feat will serve them well in Trump's healthcare scheme. Right or wrong, the new healthcare policy will have a positive effect on UNH.

SOURCES:



http://www.telegraph.co.uk/news/2017/03/08/difference-obamacare-trumpcare-happens-next/
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