After the Labor Department’s hiring report stated that U.S. employers added only 235,000 jobs in August, barely one-third of the consensus forecast of 730,000 jobs added…
global stock markets and Wall Street futures climbed on Monday, supported by expectations that the Federal Reserve may postpone the withdrawal of economic stimulus. Although the Dow Jones Industrial Average (DJIA) declined yesterday on concerns surrounding the Delta Variant’s impact on the economic recovery, some investors and analysts remain optimistic.
Officials indicated that the Fed might decide this month on when to initiate tapering of its bond purchases. Because employment is a crucial factor, the Fed wants to ensure that an economic recovery is enroute for sure. This position has fostered positive investor sentiment. The Fed’s postponement in reducing bond purchases will ensure capital continues to flow in the financial system to aid economic recovery.
Given this backdrop, we think it could be wise to bet on fundamentally sound Dow Jones stocks UnitedHealth Group Incorporated (UNH – Get Rating), McDonald’s Corporation (MCD – Get Rating), Honeywell International Inc. (HON – Get Rating), and Walgreens Boots Alliance Inc. (WBA – Get Rating).
UnitedHealth Group Incorporated (UNH – Get Rating)
UNH is a diversified health care company based in the United States. UnitedHealthcare; OptumHealth; OptumInsight; and OptumRx are the company’s four operational segments. Last month, the state of Nevada selected Health Plan of Nevada, a UnitedHealthcare company, as one of four managed care companies to run its Medicaid program in Clark and Washoe counties, effective Jan. 1, 2022. The four-year contract will include the state’s Temporary Assistance for Needy Families, Children’s Health Insurance Program, and Medicaid expansion programs.
UNH’s revenue increased 14.8% year-over-year to $71.32 billion in the second quarter, ended June 30, 2021. Its operating income came in at $5.98 billion. The company reported $4.27 billion in net income, while its EPS came in at $4.46 over this period.
The company’s EPS is expected to grow 11.1% year-over-year to $18.75 in its fiscal year 2021. Analysts expect UNH’s revenue to increase 10.4% year-over-year to $283.86 billion in the current year. The stock has gained 33.7% in price over the past year and 20.6% year-to-date.
UNH’s POWR Ratings reflect this promising outlook. The company has an overall A rating, which translates to Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
UNH is also rated an A for Stability, and a B for Quality. In addition, it is ranked #2 of 11 stocks within the B-rated Medical – Health Insurance industry.
To see additional POWR Ratings for Growth, Momentum, Value, and Sentiment for UNH, click here.
Click here to checkout our Healthcare Sector Report for 2021
McDonald’s Corporation (MCD – Get Rating)
MCD, a prominent global foodservice retailer, operates and franchises more than 39,000 McDonald’s restaurants worldwide. U.S. International Lead Markets; High Growth Markets; Foundational Markets; and Corporate are among the company’s target markets.
During the second quarter, ended June 30, 2021, MCD’s total revenue increased 57% year-over-year to $5.89 billion. Its operating income…
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