Score 9.8 (out of 10): UNITEDHEALTH GROUP is poised for a +16.7% rally in 3 months

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What’s Going On Here?

UnitedHealth’s reach touches nearly every corner of the health sector. It operates one of the nation’s largest health insurance companies and filled more than 1 billion prescriptions last year through its pharmacy benefit manager. It also owns physician groups and surgery centers.

Why Now?

UNITEDHEALTH GROUP has reached a new medium term low. Previously, during similar occasions, UNITEDHEALTH GROUP shares had a median return of +16.7%, over the following 3 months based on 10 historical occasions with 10 of those showing positive returns (100% hit ratio). This buy signal for UNITEDHEALTH GROUP received a high score of 9.8 (out of 10). This insight was generated on 2022-September-30 with last price of 505.04.

What’s This Asset About?

UNITEDHEALTH GROUP is in the Medical-HMO business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. 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 589.61 (+16.7%) has been reached. Based on UNITEDHEALTH GROUP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 492.84 (last price at 505.04), which is equivalent to a -2.4% 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’ under (2), etc.

Previous episodes:

16% (May-2022), 10.5% (February-2022), 27.2% (September-2021), 26.5% (January-2021), 12.4% (January-2020), 19.3% (July-2019), 19.6% (February-2019), 4.5% (August-2018), 17.5% (January-2018), 12.4% (June-2016).

Historical Chart:

Summary:

NameUnited Health Group
ViewUp
Star (1 to 10)9.8
Target+16.7%
Time3 months
Hit Rate100%

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