Traders work on the post where UnitedHealth Group is traded on the ground of the Recent York Stock Exchange.
Brendan McDermid | Reuters
UnitedHealth Group‘s (UNH) quality quarterly results Friday are a superb sign for the broader health-care landscape, CNBC’s Jim Cramer said.
The managed-care giant earned an adjusted $6.56 per share on revenues of $92.4 billion within the three months ended Sept. 30. Each figures topped Wall Street expectations.
Shares of UnitedHealth rose roughly 2% on Friday to around $535 each. In a largely stronger day for the market overall, the S&P 500 health-care sector climbed nearly 1%, with only energy and financials performing higher. It’s value noting that UNH is the highest-priced stock within the Dow — so big swings in these shares can really move the 30-stock average.
If you happen to like this story, enroll for Jim Cramer’s Top 10 Morning Thoughts on the Market email newsletter without cost.
UnitedHealth “is a key component within the health-care universe, and … there will likely be a plethora of stocks that may trade well off this,” Cramer said on “Squawk on the Street.” Humana (HUM) is one in every of them — up nearly 2.5% on Friday. Cramer’s Charitable Trust, the portfolio utilized by the CNBC Investing Club, owns Humana shares.
Friday marked the second time UnitedHealth has reported quarterly results because it warned in June about elevated medical costs amid an uptick in procedures from seniors.
The corporate’s past comments had major ripple effects for health-care stocks, dragging down fellow insurers — resembling Humana — while boosting shares of many medical device makers.
UnitedHealth’s better-than-expected second-quarter ends in July helped soothe investor angst, and Cramer suggested Friday’s report offered additional assurance on medical cost trends. “UNH is back,” he added.
Including Friday’s gains, UNH shares turned barely positive 12 months to this point.
Here’s a full list of the stocks in Jim’s Charitable Trust, the portfolio utilized by the CNBC Investing Club.
