NEW YORK, July 7 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
"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.