Dow's fourth largest stock cures by surprise surprise
Shares of UnitedHealth Group Inc (NYSE: UNH), Dow's fourth most weighted component, shot up after the health care giant beat Wall Street & # 39; s current growth estimates.
On Tuesday, the stock rose from Monday's closing price of $ 222.07 to $ 239.84, a jump of 8%. The Dow 30 member has since paired some of the winnings to trade for $ 238.20.
Minnetonka, Minnesota-based health giant revealed in its third quarter results that revenue growth in 201[ads1]9 would be between 13% and 16%. This was against the Wall Street projections of 11%.
UnitedHealth grows by 'conservative' double digits
Full-year adjusted earnings forecasts are now expected to be between $ 14.90 and $ 15 per share. Previously, revenues had been estimated to be between $ 14.70 and $ 14.90.
Despite beating the estimates, CEO David Wichmann still said the estimates are "conservative."
For the third quarter, UnitedHealth also released figures that beat Wall Street revenue. Revenues increased 6.7% year-on-year or $ 3.8 billion to $ 60.4 billion.
This was the third quarter in a row that the health care system exceeded analysts' expectations. And despite entering the 2020 election with a stable of Democratic presidential candidates whose agendas could nullify the private health care system, Wichmann gave assurances that UnitedHealth had the capacity to weather in difficult operating environments.
"We have a strong track record of thriving in floating environments, similar to the one we are in today," Wichmann said. "We are uniquely diverse with significant experience and emphasis in all aspects of health care."
Perhaps in an effort to prevent a radical shift in the US health care delivery system, CEO of the company's UnitedHealthcare division, Dirk McMahon, argued that increased access would be driven by lowering costs .
Dow boosted by analyst-beating UNH earnings
Despite the optimism, UnitedHealth Group shares are still trading well below the all-time high, and are currently also nearly 12% below the 2019 high level in July.
Nevertheless, UnitedHealth's star revenue and forecasts helped launch the Dow Jones Industrial Average to gains of around 300 points.
Other shares that contributed to the upside next to UnitedHealth include JPMorgan Chase, which rose by around 4%. Intel, Caterpillar and Johnson & Johnson also increased the index.
This article was edited by Josiah Wilmoth .
