Stocks were little changed after closing a third consecutive losing quarter as investors grappled with recession concerns amid persistent inflation. The Dow fell 6.66% for the quarter, while the S&P 500 and the Nasdaq Composite dropped 5.28% and 4.11%, respectively.
Traditionally one of the most stable and recession-resistant sectors, everyone needs healthcare at some point regardless of income status. “The defensive aspects of the sector, while not fully appreciated at times over the past few years, is beginning to kick-in in a rather meaningful way,” said Jared Holz, a healthcare strategist at Oppenheimer.
Today we’re focusing on a name offering defensive growth from the desirable healthcare sector with a bevy of built-in advantages over peers from the group.
A Return to Normal? PhD Economist: “Don’t Bet on It”
According to former Goldman Sachs executive, Nomi Prins…
Americans who are hoping for a ‘return to normal’ are going to be shocked when they see what happens next in America.
She says, “If you’re betting your job, savings, or retirement accounts on a return to ‘normal’ you’re about to be left behind by a brand-new crisis few see coming.”
Go here now to see America’s next crisis
A name offering defensive growth from the desirable sector currently is UnitedHealth Group (UNH). As the most significant health insurance company by market cap and market share, UNH’s size gives it built-in advantages over peers in the group.
Despite the market slowdown this year, UNH’s share price is up more than 4%, outperforming its peers and the broader market. The Health Care Select Sector SPDR Fund (XLV) is down nearly 9% YTD, while the S&P 500 has shed more than 17%.
UnitedHealth reported double-digit revenue growth for 2021. Full-year revenue was listed at $287.6 billion, up 11.8% year over year. Full-year EPS increased from $16.03 in 2020 to $18.08. The company expects annual 2022 revenue of between $317 and $320 billion, the median of which implies an 11% upside year over year. UNH forecasts 2022 EPS of $20.20 to $20.50.
Momentum should be supported in the coming years thanks to UNH’s strong market position and attractive core business. Its international business expansion provides substantial diversification benefits and shields against the impact of tightening U.S. regulations while allowing the Dow giant to tap into the $8.3 trillion spent annually on global healthcare.
UnitedHealth has a solid history of rewarding investors with a steady paycheck. The company went to a quarterly dividend in 2010 and, since then, has increased its dividend every year. That includes a 16% bump last year to $1.45 a share, which works out to a yield of 1.10% at its current price. UNH’s payout has increased 31% over the past five years, and the stock has a 5-year annualized dividend growth rate of 17.18%. The stock looks like a value at about 27 times earnings, compared to the healthcare industry, where the average P/E is around 37.
Where to invest $1,000 right now...
Before you consider buying UNH, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not UNH.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
Click here to watch his presentation, and decide for yourself...
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Click here to find out the name and ticker of Keith's #1 pick...
The Forever Battery: Making Gas Guzzlers Obsolete
Only 2% of cars sold in the U.S. today are electric vehicles… but that’s about to change — FAST.
A new battery breakthrough is ready to hit the market. It could revolutionize the $2 trillion automotive industry … and could soon make gas guzzlers obsolete.
This technology is predicted to cause a 1,500% surge in electric vehicle sales over the next four years.
The company pioneering this new battery could be the investment of a lifetime.