No. of Recommendations: 3
I'm not at all suggesting the below example, however, in the past 17 years, there have been opportunities with distressed assets.
UNH - United Health Care
The stock is currently trading for ~2018-9 levels. (currently ~$250/sh)
There is a laundry list of reasons why it is out of favor, but is the business truly, significantly impaired moving forward?
In it's cohort, it's operating profit is some several % higher than other companies:
............................UNH.....................MCK.............CI.............CVS.............ELV
Company Name................UnitedHealth Group Inc..McKesson Corp...Cigna Group....CVS Health Corp.Elevance Health Inc
Last Price..................$252.15................$699.88.............$272.64....$62.38...........$287.35
Market Cap..................$241.34B...............$89.30B.............$79.57B....$78.81B..........$66.10B
Price / Earnings (TTM) .....11.52..................27.70...............16.50.......14.89............12.49
Annual Dividend Yield.......3.32%..................0.46%...............2.03%........4.27%............2.33%
EPS Growth Fcst3-5 Year.....+5.81%.................+12.26%.............+11.23%....+16.15%..........+12.75%
Net Profit Margin...........+5.22%.................+0.97%..............+2.11%.....+1.38%............+2.83%
A play where investment requires only to buy, then wait for the company to stabilize and then return to growth seems to be on the board.
Of course, UNH could see regulatory challenges, fines, other government impacts, technology disruptions and more corporate malfeasance.....
