UnitedHealth Group (UNH) Could Be Headed Lower, Here’s Why

A key support level has formed in the chart of UnitedHealth Group Inc. (UNH).  If this level is broken, a breakdown could occur… 

UnitedHealth Group Inc. (UNH) is the largest private health insurance provider in the United States, offering medical benefits to nearly 50 million members across its U.S. and international businesses.

UNH has grown its sales consistently over the past few years. This should continue as the company has a strong market position that is driven by new deals and an expansion of its offerings. The company’s health service business, Optum, is growing through pharmacy care services, technology, and government services.

The company has $20.8 billion in cash as of the end of the last quarter, compared to only $3.9 billion in short-term debt. UNH is also profitable with a high 25.7% return on equity. Both sales and earnings are up over the past year, while earnings are expected to rise 16% this year.

The stock has a reasonable P/E of 20.8, due to its recent bearish momentum, though UNH is up almost 25% for the past year. The company has an overall rating of Buy in our POWR Ratings system.

Take a look at the 1-year chart of UNH below with added notations…

See chart and continue reading at STOCKNEWS.com