4-Star Stocks Poised to Pop: UnitedHealth

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, managed care provider UnitedHealth Group (NYSE: UNH  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at UnitedHealth's business and see what CAPS investors are saying about the stock right now.

UnitedHealth facts

Headquarters (founded) Minnetonka, Minn. (1974)
Market Cap $56.7 billion
Industry Managed health care
Trailing-12-Month Revenue $105.7 billion
Management CEO Stephen Hemsley (since 2006)
CFO David Wichmann (since 2011)
Return on Equity (average, past 3 years) 18.6%
Cash/Debt $14.4 billion / $12.6 billion
Dividend Yield 1.6%
Competitors Aetna
Humana
WellPoint

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 3,453 of the members who have rated UnitedHealth believe the stock will outperform the S&P 500 going forward.  

A couple of months ago, one of those Fools, All-Star Munchies101, succinctly summed up the bull case for our community:

We are no longer going to see the tremendous growth we saw in the past, reform and economics of scale are going to curb that ... but we are going to see a stable company, with stable growth in price and dividend. This stock has become a stalwart, and monster of one at that. ...

The nice thing about this is that it is pretty modestly priced as well. Forward P/E of 9, [price-to-book] of 2. ... This is not a bad price to pay for a company that will demolish the playing field in the future. Very low risk, good odds of a solid return, and a chance they will make a killing in the future. I like that.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong five-star rating, UnitedHealth may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of and creating a diagonal call position in UnitedHealth. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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