Good News for Healthcare Stocks?

Given the news coming out of DC, many investors are currently concerned about the state of healthcare stocks. Well, one company that reported earnings on Tuesday is often a good indicator of how those precise stocks are performing right now. In today’s blog, we’ll take a look at this healthcare giant’s earnings announcement, and I’ll reveal how this announcement bodes for the overall healthcare market.

Prior to the opening bell on Tuesday, UnitedHealth Group (UNH) released their third-quarter earnings report. Total sales during the quarter grew 8.7% year-over-year to $50.32 billion, just shy of the consensus for $50.35 billion. Adjusted earnings per share rose to $2.66. Analysts were anticipating earnings of $2.56 per share. So, UnitedHealth Group delivered a 3.9% earnings surprise.

Furthermore, UnitedHealth Group expects full-year 2017 adjusted earnings to approach $10.00 per share, slightly higher than the consensus estimate of $9.87. The analyst community is looking for full-year 2017 revenue between $50.79 billion and $52.17 billion. Given the company’s resiliency in the face of healthcare reform uncertainties, it’s no surprise that within the past month, three analysts have revised their full-year 2017 earnings estimates higher.

Shortly following Tuesday’s opening bell, this relatively solid report buoyed UNH shares by about 2.9%. As of now, shares have continued to rebound nicely from the shakiness they were seeing over the past couple weeks. Wall Street is clearly happy with these results, which bodes well for other healthcare stocks as UNH is recognized as a leading indicator for healthcare stocks generally.

Obviously, with the stock market, every bit of news needs to be taken with a grain of salt, and our enthusiasm should always be tempered. Prices can shift on a dime, and one indicator doesn’t mean everything is falling into place.

As far as UNH goes, however, it maintains an A-rating in Portfolio Grader, and it’s already brought my Blue Chip Growth members a better than 81% return.

If you aren’t ready to join Blue Chip Growth today, however, I urge you to stay tuned into this blog right here where I’ll continue revealing some of the biggest highlights of this earnings season.


signed: Louis Navellier

Louis Navellier

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