UNH Stock Rose ~3.5% on Stellar 1Q18 Performance: What’s Next?

UNH stock performance

UnitedHealth Group (UNH) stock recorded a rise of ~3.5% on April 17, as the company posted strong 1Q18 results. On April 19, UNH stock closed at $235.76 per share. The company beat analysts’ estimates for its sales, earnings, and profit estimates and raised its fiscal 2018 outlook. UNH stock is trading higher than its 50-day moving average of $224.87 and its 200-day moving average of $220.79.

UNH Stock Rose ~3.5% on Stellar 1Q18 Performance: What’s Next?

UNH stock was trading at its 52-week high of $250.79 on January 29, 2018. On the next day, UNH stock fell ~4.2%—along with other healthcare companies’ stocks—on the news of Berkshire Hathaway (BRK.B), Amazon (AMZN), and J.P. Morgan (JPM) creating a partnership that aims to reduce their employee healthcare costs.

UNH stock traded at its 52-week low of $166.65 on May 17, 2017. Over the last year, UnitedHealth Group stock has provided returns of ~39.3%. Year-to-date, the stock has registered a rise of ~7.0%. In the last three months, UNH stock has decreased ~3.0%.

Peer performances

On April 19, UnitedHealth Group’s peers Anthem (ANTM), CVS Health (CVS), and Aetna (AET) had risen about 35.6%, -17.1%, and 33.7%, respectively, over the last 12 months.

UnitedHealth Group outperformed the broader healthcare industry over the past 12 months. The Health Care Select Sector SPDR ETF (XLV), which is representative of the US healthcare industry, rose ~11.4% over the last year.

The broader market, which is represented by the S&P 500 Index, returned ~15.0%. This shows that UNH stock has provided returns higher than the broader market as well as the industry’s average returns over the last 12 months.