Score 8.8 (out of 10): UNITEDHEALTH GROUP INC is poised for a +11.9% rally in 3 months

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What’s Going On Here?

A unit of UnitedHealth has settled a drug overcharge case for just $5.8mln. Now with this small overhang out of the way, investors in UnitedHealth can focus again on the fundamentals of the company.

Why Now?

UNITEDHEALTH GROUP INC has reached a new medium term low. Previously, during similar occasions, UNITEDHEALTH GROUP INC shares had a median return of +11.9%, over the following 3 months based on 10 historical occasions with 9 of those showing positive returns (90% hit ratio). This buy signal for UNITEDHEALTH GROUP INC received a high score of 8.8 (out of 10). This insight was generated on 2022-February-24 with last price of 455.89.

What’s This Company About?

UNITEDHEALTH GROUP INC is in the Medical-HMO business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth +15% (average). Ticker symbol: UNH US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 510.16 (+11.9%) has been reached. Based on UNITEDHEALTH GROUP INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 443.79 (last price at 455.89), which is equivalent to a -2.7% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

26.2% (September-2021), 18.5% (January-2021), 12% (February-2020), 14.2% (August-2019), 10.9% (April-2019), 4.2% (October-2018), 17% (March-2018), 11.9% (August-2016), 0.4% (November-2015), -2.8% (August-2015).

Historical Chart:

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Summary:

NameUNITEDHEALTH GROUP INC
ViewUp
Star (1 to 10)8.8
Target+11.9%
Time3 months
Hist Rate90%

Popular Insights:

INFOSYS has denied that the company is launching a crypto project. But the company continues to expand aggressively in Costa Rico. ‘Wall Street’ analysts’ think the shares will rally +22% over the next 12 months.

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