Boston, MA 03/24/2014 (wallstreetpr) – Shares of UnitedHealth Group Inc. (NYSE:UNH) traded positively in the past weeks. During Friday session, the shares rose to a new 52-week high at $83.32, but ended up down 0.23 percent to $81.34. The stock has a one-year low of $54.23.
We take a closer look into the stock to understand why March has been a particularly good month for the stock, and also, what the future holds. But first, we look into the upcoming earnings release. The company issued a press release today that it will release its first quarter 2014 financial results on April 17. The company also announced CEO and President Stephen J. Hemsley will host a conference call with analyst and investors after the release of the results to discuss the performance of the quarter. The first quarter results will be issued before the markets open.
Explaining stock strength
The enthusiasm seen in the stock of UnitedHealth Group Inc. (NYSE:UNH) is supported by several factors. First and foremost, the preliminary Medicare Advantage rate is having a collective positive impact on insurers and UnitedHealth is among the stocks reflecting that excitement. Although a much bigger cut on the rates was expected, it was good enough the Obama administration in February undertook a 1.9 percent cut on the Medicare Advantage rates.
Besides reduction in the Medicare Advantage rate, UnitedHealth stocks is also finding strength from rising enrollment figures in the health care exchanges. Last week Fed reported that 5 million people had enrolled into the new insurance exchanges. On that note, UnitedHealth stands to gain from a number of states with expanded Medicaid. This potential also helped create exciting atmosphere in the stock in the past weeks and might be another reason for continued lift on the stock.
Improving weather
And on top of the positive exchanges enrollment and Medicare Advantage rates adjustment, improving weather is also help up the stock. In the harsh winter weather when temperatures fall below 20 and snow pile 20 inches, few people make it to the doctor’s office, and this explains why January was such an ugly month for the stock. But improving weather condition is lending support to the stock’s uplift.
