Here's Why UnitedHealth Rose 18% in October
Shares of health insurance stock UnitedHealth Group (NYSE: UNH) climbed 17.8% last month, according to data from S&P Global Market Intelligence.
UnitedHealth beat earnings estimates for the fourth consecutive quarter and raised its full-year guidance. The company now expects to finish 2021 with earnings per share that's about 20% above the prior year.
UnitedHealth's revenue increased 11% last quarter, marking an acceleration from the 6% annual growth rate in the two previous years. That's impressive stuff from an enormous company with 15% share of a mature market. It's hard to achieve those sorts of growth rates at this level of market saturation. UnitedHealth experienced some margin compression relating to insurance taxes, but the revenue growth was still large enough to drive a 20% increase in operating profit. These earnings also translated to strong free cash flow.
Source Fool.com
