Pro: this stock at its all-time high still has further upside

0

Shares of UnitedHealth Group Inc (NYSE: UNH) hit an all-time high on Friday. Still, Chantico Global CEO Gina Sanchez says the stock is not out of juice yet.

UNH is still not very expensive

UNH now trades at a PE multiple of 30.28. Interestingly, however, Sanchez does not see the stock as extremely overvalued. Explaining why on CNBC’s “The Exchange”, she said:

UNH is trading at only a modest premium to SPX. From the valuation standpoint, it’s not extremely overvalued and we do actually see some upside here. And if we go into a recession, it’s a very good recession-proof stock.

UnitedHealth Group was the most profitable among managed healthcare and insurance companies in 2021. It is set to report its Q1 financial results on April 14th.

UNH is committed to growth

Sanchez’ remarks come more than a week after the American multinational said it will spend $5.40 billion in cash to acquire LHC Group Inc – a Louisiana-based home healthcare services company. She noted:

They had a set back because their acquisition of Charge Healthcare was blocked by the DOJ. But the new acquisition of LHC Group will add to its home health offering. Everything that this company has been doing is about top and bottom-line growth.

A day earlier, UnitedHealth announced another $100 million investment in affordable housing. The stock has gained about 20% in less than two months.

The post Pro: this stock at its all-time high still has further upside appeared first on Invezz.