A Late-Year Recovery Saved UnitedHealth Stock

Josh Nathan-Kazis Health DVA GS UNH WBA Apple Federal Trade Commission Goldman Sachs DaVita DaVita UnitedHealth UnitedHealth Group Walgreens Boots Alliance Insurance Non-life Insurance Health/Medical Insurance Health Care/Life Sciences Financial Services Health Maintenance Organizations Private Health Insurance Frank Morgan Sanders Sen. Bernie Sanders North America United States Financial Performance Earnings Corporate/Industrial News Equity Markets Commodity/Financial Market News Content Types Factiva Filters C&E Exclusion Filter C&E Industry News Filter DVA GS I/INL I/INP I/INS I/XFFX M/FCL M/HCR N/CNW N/DJN N/ERN N/MKT N/PFM N/STK N/WER R/NME R/US UNH WBA Barrons.com Barrons Blogs Wires Fortune 500 DJIA Dow Jones Industrial Average S&P 500 S&P 500 Managed Health Care SPX XX:SP500.35102030 CODES_REVIEWED Companies Health Markets author Josh Nathan-Kazis author|Josh Nathan-Kazis topicid 8583 name Josh Nathan-Kazis extractedtext Josh Nathan-Kazis rank 1 codetype author code josh_nathan_kazis nameformat surname_first author Josh Nathan-Kazis id Josh Nathan-Kazis barrons_display_subject BARHEALTH barrons_display_subject|BARHEALTH canbedisplaysubject true codetype BARRONS_DISPLAY_SUBJECT name Health source MANUAL code BARHEALTH value BARHEALTH status modified co wlgrn co|wlgrn country US symbol WBA displayname Walgreens Boots Alliance why occur extractedtext Walgreens Boots Alliance source FACTIVA seoname walgreens_boots_alliance countrycode US relevancerange low chartingsymbol STOCK/US/XNAS/WBA fcode wlgrn fullextractedtext Walgreens Boots Alliance ticker WBA confidence 90 subcat com relevance 25 significance passing onlinesignificance passing-mention name Walgreens Boots Alliance confidencerange high exchange Nasdaq exchangeisocode XNAS codetype co code wlgrn co Apple co|Apple fullextractedtext Apple country US symbol AAPL ticker AAPL displayname Apple extractedtext Apple source FACTIVA subcat com seoname apple countrycode US name Apple exchange Nasdaq exchangeisocode XNAS chartingsymbol STOCK/US/XNAS/AAPL codetype co code apple co ftrade co|ftrade fullextractedtext Federal Trade Commission codetype co displayname Federal Trade Commission confidence 100 why about extractedtext Federal Trade Commission source FACTIVA subcat org code ftrade relevance 1 name Federal Trade Commission significance prominent onlinesignificance prominent confidencerange high relevancerange verylow fcode ftrade co uhelc co|uhelc country US symbol UNH codetype co displayname UnitedHealth Group why about extractedtext UnitedHealth source FACTIVA occurs true seoname unitedhealth_group name UnitedHealth orgtype public relevancerange high chartingsymbol STOCK/US/XNYS/UNH fcode uhelc fullextractedtext UnitedHealth confidence 100 subcat com code uhelc relevance 92 significance prominent onlinesignificance prominent confidencerange high exchangeisocode XNYS co gldmns co|gldmns country US symbol GS codetype co displayname Goldman Sachs Group why occur extractedtext Goldman Sachs source FACTIVA seoname goldman_sachs_group name Goldman Sachs relevancerange low chartingsymbol STOCK/US/XNYS/GS fcode gldmns fullextractedtext Goldman Sachs confidence 100 subcat com code gldmns relevance 20 significance passing onlinesignificance passing-mention confidencerange high exchangeisocode XNYS co totrc co|totrc country US symbol DVA codetype co displayname DaVita HealthCare Partners why occur extractedtext DaVita source FACTIVA seoname davita name DaVita relevancerange low chartingsymbol STOCK/US/XNYS/DVA fcode totrc fullextractedtext DaVita confidence 100 subcat com code totrc relevance 20 significance passing onlinesignificance passing-mention confidencerange high exchangeisocode XNYS co UHELC co|UHELC symbol UNH country US codetype co displayname UnitedHealth Group extractedtext UnitedHealth Group source MANUAL code unh name UnitedHealth Group significance prominent onlinesignificance passing-mention exchange U.S.: NYSE exchangeisocode XNYS chartingsymbol STOCK/US/XNYS/UNH fcode UHELC status modified co TOTRC co|TOTRC symbol DVA country US codetype co displayname DaVita extractedtext DaVita source MANUAL code dva name DaVita significance prominent onlinesignificance passing-mention exchange U.S.: NYSE exchangeisocode XNYS chartingsymbol STOCK/US/XNYS/DVA fcode TOTRC status modified company UNH company|UNH name UnitedHealth Group significance PASSING-MENTION name UnitedHealth significance PROMINENT company DVA company|DVA name DaVita significance PASSING-MENTION djn WBA djn|WBA significance passing onlinesignificance passing-mention name WBA why occur source FACTIVA fcode WBA codetype djn code wba djn UNH djn|UNH codetype djn why about source FACTIVA occurs true code unh name UNH significance prominent onlinesignificance prominent fcode UNH djn GS djn|GS codetype djn why occur source FACTIVA code gs name GS significance passing onlinesignificance passing-mention fcode GS djn DVA djn|DVA codetype djn why occur source FACTIVA code dva name DVA significance passing onlinesignificance passing-mention fcode DVA djn I/INL djn|I/INL codetype djn why about source FACTIVA occurs true code i_inl name I/INL significance prominent onlinesignificance prominent fcode I/INL djn M/HCR djn|M/HCR codetype djn why about source FACTIVA code m_hcr name M/HCR significance prominent onlinesignificance prominent fcode M/HCR djn I/INS djn|I/INS codetype djn name I/INS why lineage source FACTIVA code i_ins fcode I/INS djn I/INP djn|I/INP codetype djn name I/INP why lineage source FACTIVA code i_inp fcode I/INP djn M/FCL djn|M/FCL codetype djn name M/FCL why lineage source FACTIVA code m_fcl fcode M/FCL djn N/STK djn|N/STK codetype djn why about source FACTIVA code n_stk name N/STK significance prominent onlinesignificance prominent fcode N/STK djn N/MKT djn|N/MKT codetype djn why about source FACTIVA code n_mkt name N/MKT significance prominent onlinesignificance prominent fcode N/MKT djn N/ERN djn|N/ERN codetype djn why about source FACTIVA code n_ern name N/ERN significance prominent onlinesignificance prominent fcode N/ERN djn N/PFM djn|N/PFM codetype djn name N/PFM why lineage source FACTIVA code n_pfm fcode N/PFM djn N/CNW djn|N/CNW codetype djn name N/CNW why lineage source FACTIVA code n_cnw fcode N/CNW djn R/US djn|R/US codetype djn why about source FACTIVA code r_us name R/US significance prominent onlinesignificance prominent fcode R/US djn R/NME djn|R/NME codetype djn name R/NME why lineage source FACTIVA code r_nme fcode R/NME djn I/XFFX djn|I/XFFX codetype djn why about source FACTIVA code i_xffx name I/XFFX significance prominent onlinesignificance prominent fcode I/XFFX djn N/DJN djn|N/DJN codetype djn name N/DJN source DJN-CONTROL code n_djn value N/DJN status modified inactivebydefault true djn N/WER djn|N/WER codetype djn name N/WER source DJN-CONTROL code n_wer value N/WER status modified inactivebydefault true editorial-seo-id unitedhealth-stock-recovery-2019-51577030902 editorial-seo-id|unitedhealth-stock-recovery-2019-51577030902 first_publish_headline A Late-Year Recovery Saved UnitedHealth Stock. Analysts Think It Can Weather the 2020 Election. first_publish_headline|A Late-Year Recovery Saved UnitedHealth Stock. Analysts Think It Can Weather the 2020 Election. flow NWREGULAR flow|NWREGULAR codetype FLOW name Wires source MANUAL value NWREGULAR code NWREGULAR status modified flow Barrons.com flow|Barrons.com codetype FLOW name Barrons.com source MANUAL value Barrons.com code online status modified name Online title Product code Barrons.com flow Barrons Blogs flow|Barrons Blogs codetype FLOW source MANUAL title Product code Barrons_Blogs name Barrons Blogs value Barrons Blogs status modified headline A Late-Year Recovery Saved UnitedHealth Stock. Analysts Think It Can Weather the 2020 Election. headline|A Late-Year Recovery Saved UnitedHealth Stock. Analysts Think It Can Weather the 2020 Election. idx xf500 idx|xf500 codetype idx why about source FACTIVA code xf500 name Fortune 500 significance prominent onlinesignificance prominent fcode xf500 in i8200301 in|i8200301 codetype in why about source FACTIVA code i8200301 name Health/Medical Insurance significance prominent onlinesignificance prominent fcode i8200301 in i951 in|i951 codetype in why about source FACTIVA code i951 name Health Care/Life Sciences significance prominent onlinesignificance prominent fcode i951 in i82 in|i82 codetype in name Insurance why lineage source FACTIVA code i82 fcode i82 in i82003 in|i82003 codetype in name Non-life Insurance why lineage source FACTIVA code i82003 fcode i82003 in ifinal in|ifinal codetype in name Financial Services why lineage source FACTIVA code ifinal fcode ifinal in ihmo in|ihmo codetype in name Health Maintenance Organizations why association source FACTIVA code ihmo fcode ihmo in iprivhea in|iprivhea codetype in name Private Health Insurance why lineage source FACTIVA code iprivhea fcode iprivhea index S&P 500 Managed Health Care index|S&P 500 Managed Health Care symbol XX:SP500.35102030 country XX codetype index displayname S&P 500 Managed Health Care Sub Industry Index extractedtext S&P 500 Managed Health Care source MANUAL code xx_sp500_35102030 name S&P 500 Managed Health Care significance prominent onlinesignificance passing-mention exchange S&P US exchangeisocode S&P US chartingsymbol INDEX/XX/S&P US/SP500.35102030 status modified index S&P 500 index|S&P 500 symbol SPX country US codetype index displayname S&P 500 Index extractedtext S&P 500 source MANUAL code spx name S&P 500 significance prominent onlinesignificance prominent exchange S&P US exchangeisocode S&P US chartingsymbol INDEX/US/S&P US/SPX status modified index Dow Jones Industrial Average index|Dow Jones Industrial Average name Dow Jones Industrial Average displayname Dow Jones Industrial Average symbol DJIA chartingsymbol INDEX/US/DOW JONES GLOBAL/DJIA exchange Dow Jones Global exchangeisocode DOW JONES GLOBAL country US onlinesignificance prominent significance prominent codetype index source MANUAL status modified extractedtext Dow Jones Industrial Average code djia media media-2 media|media-2 responsive layout wrap softcrop Horizontal imphotoid im-90847 location https://images.barrons.com/im-90847/?size=1.5 media media-1 media|media-1 softcrop Horizontal imphotoid im-90847 location https://images.barrons.com/im-90847/?size=1.5 ns m11 ns|m11 codetype ns why about source FACTIVA code m11 name Equity Markets significance prominent onlinesignificance prominent fcode m11 ns mcat ns|mcat codetype ns why about source FACTIVA code mcat name Commodity/Financial Market News significance prominent onlinesignificance prominent fcode mcat ns c151 ns|c151 codetype ns why about source FACTIVA code c151 name Earnings significance prominent onlinesignificance prominent fcode c151 ns c15 ns|c15 codetype ns name Financial Performance why lineage source FACTIVA code c15 fcode c15 ns ccat ns|ccat codetype ns name Corporate/Industrial News why lineage source FACTIVA code ccat fcode ccat ns ncat ns|ncat codetype ns why lineage source FACTIVA code ncat name Content Types internalsymbol true fcode ncat ns nfact ns|nfact codetype ns why lineage source FACTIVA code nfact name Factiva Filters internalsymbol true fcode nfact ns nfce ns|nfce codetype ns why lineage source FACTIVA code nfce name C&E Exclusion Filter internalsymbol true fcode nfce ns nfcpin ns|nfcpin codetype ns why lineage source FACTIVA code nfcpin name C&E Industry News Filter internalsymbol true fcode nfcpin nwchain SB524475986316793338304045860886619549967641 nwchain|SB524475986316793338304045860886619549967641 pe Frank Morgan pe|Frank Morgan lastname Morgan codetype pe displayname Morgan, Frank extractedtext Frank Morgan source FACTIVA code frank_morgan name Frank Morgan firstname Frank nameformat surname_first pe Sanders pe|Sanders lastname Sanders codetype pe displayname Sanders extractedtext Sanders source FACTIVA code sanders name Sanders nameformat surname_first pe Sen. Bernie Sanders pe|Sen. Bernie Sanders lastname Sanders codetype pe displayname Sanders, Bernie extractedtext Sen. Bernie Sanders source FACTIVA code sen_bernie_sanders name Sen. Bernie Sanders firstname Bernie nameformat surname_first re usa re|usa codetype re why about source FACTIVA subcat cntry code usa name United States significance prominent onlinesignificance prominent fcode usa re namz re|namz codetype re why lineage source FACTIVA subcat snr code namz name North America fcode namz relay SYND relay|SYND codetype RELAY name Syndication source EXPANDER value SYND code synd status modified statistic CODES_REVIEWED statistic|CODES_REVIEWED name CODES_REVIEWED value CODES_REVIEWED codetype STATISTIC code CODES_REVIEWED subject BARCOMP subject|BARCOMP codetype SUBJECT title Companies code BARCOMP name Companies canbedisplaysubject true ruleid BARCOMP value BARCOMP status modified subject BARMKTS subject|BARMKTS codetype SUBJECT selectable true title Markets code BARMKTS name Markets canbedisplaysubject true ruleid BARMKTS value BARMKTS status modified subject BARHEALTH subject|BARHEALTH codetype SUBJECT title Health code BARHEALTH name Health canbedisplaysubject true ruleid BARHEALTH value BARHEALTH status modified wordcount 608 wordcount|608 id facebook id|facebook news_tab_url https://www.barrons.com/articles/unitedhealth-stock-recovery-2019-51577030902 Photograph by Michael Nagle/Bloomberg A Late-Year Recovery Saved UnitedHealth Stock. Analysts Think It Can Weather the 2020 Election. A Late-Year Recovery Saved UnitedHealth Stock. Analysts Think It Can Weather the 2020 Election. A Late-Year Recovery Saved UnitedHealth Stock. Can It Weather the 2020 Election?

For UnitedHealth Group, 2019 was a year marked by the rise—and fall—of worries over proposals to remake the American health care system. Those worries are mostly over, but are bound to rise again before the 2020 election.

A Late-Year Recovery Saved UnitedHealth Stock

For UnitedHealth Group, 2019 was a year marked by the rise—and fall—of worries over proposals to remake the American health care system. Those fears are bound to rise again before the 2020 election.

https://www.barrons.com/articles/best-worst-company-stocks-dow-2019-51577139194 https://www.barrons.com/articles/unitedhealth-stock-davita-deal-federal-trade-commission-approval-physician-network-51561040395 https://www.barrons.com/articles/unitedhealth-is-the-top-dow-stock-merck-is-the-worst-just-how-efficient-can-the-market-get-51562863199 https://www.barrons.com/articles/https:/www.barrons.com/articles/cigna-cvs-stocks-pharmacy-benefit-managers-rebate-proposal-medicare-medcaid-51562850436?mod=article_inlineamgen-unitedhealth-dentsply-sirona-stock-goldman-sachs-51576509262 https://www.barrons.com/articles/unitedhealth-stock-rises-investor-day-impresses-wall-street-51575473646 mailto:josh.nathan-kazis@barrons.com A Late-Year Recovery Saved UnitedHealth Stock. Analysts Think It Can Weather the 2020 Election. By Josh Nathan-Kazis Photograph by Michael Nagle/Bloomberg Pedestrians pass in front of a UnitedHealth Group Inc., storefront in Flushing, New York

With the year almost over, we’re taking a look at all 30 stocks in the Dow, starting with the worst performer—Walgreens Boots Alliance—and working our way up to the highest-flying stock in the benchmark—Apple. The ranking may shift before the close of 2019 trading, but the stories behind the stocks shouldn’t.

For UnitedHealth Group, 2019 was a year marked by the rise—and fall—of worries over proposals to remake the American health care system.

The stock is ending the year up about 19%, putting it right in the middle of the Dow Jones Industrial Average in terms of year-to-date performance. But that comes after long months in which the fortunes of the health insurance firm looked grim.

In April 2019, Sen. Bernie Sanders introduced a new version of his Medicare for All bill, which would effectively torch the private health insurance industry. Between April 10, when Sanders introduced the bill, and April 18, as Medicare for All dominated headlines, shares of UnitedHealth Group (ticker: UNH) fell 10.9%, while the broader S&P 500 index rose 0.9%. Shares of the S&P 500 Managed Health Care industry index were down 12.7% over that period.

Yet over the next few months, the stock clawed its way back. The stock is up about 36% since Oct. 1, beating the S&P 500, which is up about 9% over the same period.

The Federal Trade Commission’s announcement in June that it would approve UnitedHealth’s long-delayed acquisition of a large physician’s group owned by DaVita (DVA) helped the stock. The deal, which cost UnitedHealth $4.3 billion, was held up by regulators for more than a year.

The gradual shifting of focus away from Medicare for All was another boon for the stock. Investors grew more comfortable with the idea that drastic change isn’t likely in the near term, and attention shifted to drugmakers.

As the year comes to a close, analysts are bullish on UnitedHealth. In a note on Dec. 16, Goldman Sachs added UnitedHealth to its Americas Conviction List, saying its earnings prospects looked strong. An investor day in early December impressed analysts. “It seemed that investors were content with the UNH story—and we agree,” wrote RBC Capital Markets analyst Frank Morgan.

Analysts also like UnitedHealth’s exposure to Medicare Advantage, the Medicare program operated by private insurers. UnitedHealth is the biggest player in the fast-growing space.

UnitedHealth’s stock is trading at 18 times projected earnings over the next 12 months. But while earnings growth is promised for next year, the election brings uncertainty. While Medicare for All has faded from the headlines, it hasn’t gone away, and is more than likely to rear up again before votes are cast next year.

Write to Josh Nathan-Kazis at josh.nathan-kazis@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.