Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
UnitedHealth Group (UNH)
UnitedHealth Group, Inc. provides a wide range of health care products and services, such as health maintenance organizations (HMOs), point of service plans (POS), preferred provider organizations (PPOs), and managed fee-for-service programs.
UNH sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Medical - HMOs industry's P/E of 18.8X, shares of UnitedHealth Group are trading at a forward P/E of 24.4X. UNH also has a PEG Ratio of 1.7, a Price/Cash Flow ratio of 23.7X, and a Price/Sales ratio of 1.6X.
Many value investors pay close attention to a company's earnings as well. For UNH, 11 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.16 to $22.02 per share for 2022. Per share UNH boasts an average earnings surprise of 4.6%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding UNH to their portfolios.
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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report