There is widespread uncertainty in the markets due to fading stimulus hopes ahead of the November 3 presidential election and rising coronavirus cases in several parts of the country. The stalemate in negotiations for the next stimulus package will delay an economic recovery. However, corporate earnings for the third quarter have been resilient so far…
Defensive stocks with good fundamentals may prove to be good investments going into November. Healthcare and industrials are also expected to see pent-up demand in the coming quarters.
UnitedHealth Group (UNH), Abbott Laboratories (ABT), Caterpillar, Inc. (CAT), Zoetis, Inc. (ZTS) have managed to deliver decent gains despite the market witnessing widespread uncertainty. In addition to having a solid portfolio of essential products, the companies are also constantly innovating and launching new products to drive further growth.
UnitedHealth Group (UNH)
UNH operates as a health and well-being company. The company runs the Optum and UnitedHealthcare online platforms. UNH’s stock has gained 9.9% so far this year.
The company has recently acquired Divvydose, which is an online pharmacy startup. UNH also plans to introduce its Medicare Advantage healthcare plan in approximately 300 counties by next year.
For the third quarter ended September 2020, Optum saw a growth in revenue of 21% year-over-year. UNH’s total revenue increased by 7.9% year-over-year to $65.11 billion. EPS for the quarter came in at $3.51, beating the consensus estimate by 13.6%. UNH is expected to witness revenue growth of 7.1% for the quarter ending December 2020, and 8.7% in 2021. The company’s EPS is estimated to grow by 10.9% in 2021 and at a rate of 12.7% per annum over the next five years.
How does UNH stack up for the POWR Ratings?
A for Trade Grade
A for Buy & Hold Grade
B for Industry Rank
A for Overall POWR Rating
The stock is also ranked #1 out of 9 stocks in the Medical – Health Insurance industry.
Abbott Laboratories (ABT)
ABT manufactures and markets healthcare products globally. The company’s operations include marketing diagnostic products, established pharmaceuticals, vascular products, and nutritional products. ABT’s stock has gained 25.5% so far this year.
The company has sold more than 100 million coronavirus testing kits since the start of the pandemic. After receiving approval from the FDA, ABT has started to market the FreeStyle Libre 2 which is an integrated continuous glucose monitor (iCGM) for patients suffering from diabetes. The company has also started marketing its Libre Sense Glucose Sport Biosensor which is the first glucose sensor for athletes.
During the third quarter ended September 2020, the company reported an…
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