UnitedHealth Group stock to rise in Obamacare rollout -Barron's

NEW YORK, July 7 Sun Jul 7, 2013 2:59pm EDT

NEW YORK, July 7 (Reuters) - The stock of U.S. insurer UnitedHealth Group could rise 40 percent over the next two years as Obamacare is fully rolled out, business weekly Barron's said in its July 8 edition.

The company looks better positioned for the revamping of the U.S. healthcare system than competitors Aetna and Cigna because of its combination of high-growth businesses and increasing profit margins, Barron's said. By 2015, its Optum line of health-plan businesses will make up 29 percent of the company's operating earnings, up from 16 percent last year, according to Chris Rigg, an analyst at Susquehanna Financial Group.

"Its Optum business will help drive down costs for its health plans, giving it a competitive edge," Barron's wrote.

UnitedHealth Group is set to report second-quarter earnings on July 18.

The price of UnitedHealth Group's stock is up 22 percent for the year to date. The stock hit a 52-week intraday high of $66.36 on July 1, according to Thomson Reuters data. On Friday, the stock closed at $66.17.

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Comments (2)
Nolaguy wrote:
If Aetna wants to give us this much business then let them. UHC is smart enough to work with the government to offer options to people. Now are they the most incredible mind blowing options…who knows.

I do not expect Obamacare to fix a 50+ year problem in 1 day when it goes active. The people who do need mental health coverage.

Jul 07, 2013 3:29pm EDT  --  Report as abuse
SloughDude wrote:
Mandatory purchase! A “captive audience” from which to get customers! HELLO!!! It’s like shooting fish in a barrel. They’ll all make obscene profits until insurance availability makes doctors and hospitals raise all their prices and every Tom, Dick, and Harry rushes in for every butt itch, pimple, or stubbed toe, until the system just can’t handle the demands. Then (as per no doubt prearranged plans) the legislation will be repealed, the system will revert as before, or to a totally new plan (socialized medicine, as it should have in the first place!), and the corporate big-shots will just take their profits and buy new mansions. DUH!!!

Jul 07, 2013 5:11pm EDT  --  Report as abuse
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