The shares of UnitedHealth (UNH) are currently undervalued when using optimistic estimates. However, even with slightly conservative estimates, the current share price could still provide a 9% annual return potential from this moment onwards.
A majority of investors are more likely interested in how the valuation and possible long-term return for a specific stock look like. Let us start with valuation first. I will not be delving into the current business situation of UnitedHealth as there are already plenty of excellent articles covering this topic. Personally, I prefer to keep my estimates as conservative as possible in order to avoid negative surprises. In the case of UnitedHealth, if we were to assume the historical 10-year annual revenue growth of 10.0% and free cash flow to sales ratio of 5.2% could be sustained in the future, we would arrive at a normalized free cash flow level worth $11,823 million. With the current amount of outstanding shares, this translates into roughly $12.4 per share. Just as a reference, the 20-year historical values for the annual revenue growth and FCF to sales have been 16.3% and 6.3%, respectively. For 2017, analysts are expecting free cash flow per share of around $10.25 per share, which is much more pessimistic than mine.
Top 5 Undervalued Stocks To Watch For 2019: Sibanye Gold Limited(SBGL)
Advisors’ Opinion:
- [By Paul Ausick]
Sibanye Gold Ltd. (NYSE: SBGL) traded down about 1.6% Thursday and posted a new 52-week low of $3.75 after closing Wednesday at $3.81. The stock’s 52-week high is $10.60. Volume totaled around 3 million, about 15% below the daily average. The company had no specific news. Another stock that has turned it around today and looks to close about 1% higher.
- [By Lisa Levin]
Losers
Netshoes (Cayman) Limited (NASDAQ: NETS) shares dipped 43.73 percent to close at $2.87 on Tuesday as the company posted downbeat Q1 results.
Cesca Therapeutics Inc. (NASDAQ: KOOL) shares dropped 29.01 percent to close at $0.80 after reporting Q1 results.
SenesTech, Inc. (NASDAQ: SNES) shares fell 22.2 percent to close at $0.340 after reporting Q1 miss.
Vipshop Holdings Limited (NYSE: VIPS) fell 19.95 percent to close at $12.08 after the company reported weaker-than-expected earnings for its first quarter on Monday.
Image Sensing Systems, Inc. (NASDAQ: ISNS) fell 19.68 percent to close at $3.775 after reporting earnings were down year over year. First quarter earnings came in flat, down from 4 cents per share in the same quarter of last year. Sales came in at $3.01 million.
Boxlight Corporation (NASDAQ: BOXL) dropped 18.47 percent to close at $9.62 on Tuesday after surging 77.44 percent on Monday.
ENDRA Life Sciences Inc. (NASDAQ: NDRA) declined 16.21 percent to close at $2.43. ENDRA Life Sciences is expected to release quarterly earnings today.
ALJ Regional Holdings, Inc. (NASDAQ: ALJJ) shares fell 16.13 percent to close at $1.79.
Switch Inc (NYSE: SWCH) shares dropped 14.93 percent to close at $13.16 following a first-quarter earnings miss.
Restoration Robotics Inc (NASDAQ: HAIR) fell 14.42 percent to close at $3.68 after reporting a first-quarter earnings miss.
iCAD, Inc. (NASDAQ: ICAD) declined 13.01 percent to close at $3.41 following Q1 results.
Intersections Inc. (NASDAQ: INTX) fell 12.44 percent to close at $1.97.
Histogenics Corporation (NASDAQ: HSGX) declined 12.24 percent to close at $2.15.
AZZ Inc. (NYSE: AZZ) fell 12.1 percent to close at $39.60 following Q3 earnings.
Hallador Energy Company (NASDAQ: HNRG) fell 11.1 percent to close at $6.49.
Integrated Media Technology Limited (NASDAQ: IMTE) dropped 10.66 percent to close at $16.93 on Tuesday.
Myomo, Inc. (NYSE: MYO) slipp - [By Lisa Levin]
Check out these big penny stock gainers and losers
Losers
Tower Semiconductor Ltd. (NASDAQ: TSEM) fell 16.1 percent to $23.10 in pre-market trading after reporting downbeat quarterly results.
Integrated Media Technology Limited (NASDAQ: IMTE) fell 13 percent to $18.00 in pre-market trading after declining 37.37 percent on Friday.
Ability Inc. (NASDAQ: ABIL) shares fell 7.1 percent to $2.61 in pre-market trading.
International Flavors & Fragrances Inc. (NYSE: IFF) shares fell 6.4 percent to $133.00 in pre-market trading. International Flavors & Fragrances reported upbeat earnings for its first quarter and agreed to acquire Frutarom for $7.1 billion.
BHP Billiton Limited (NYSE: BHP) fell 6.8 percent to $45.00 in pre-market trading.
Sibanye Gold Limited (NYSE: SBGL) fell 6.4 percent to $3.23 in pre-market trading after dropping 2.27 percent on Friday.
Spark Therapeutics, Inc. (NASDAQ: ONCE) fell 5.9 percent to $66.52 in pre-market trading after declining 1.15 percent on Friday.
DENTSPLY SIRONA Inc. (NASDAQ: XRAY) shares fell 4 percent to $48.00 in pre-market trading. DENTSPLY SIRONA reported Q1 adjusted earnings of $0.45 per share on sales of $956.1 million. The company updated its 2018 adjusted earnings guidance to $2.55 to 2.65 per share - [By Lisa Levin]
Check out these big penny stock gainers and losers
Losers
Restoration Robotics Inc (NASDAQ: HAIR) fell 19.8 percent to $3.45 in pre-market trading after reporting a first-quarter earnings miss.
Image Sensing Systems, Inc. (NASDAQ: ISNS) fell 19.2 percent to $3.80 in pre-market trading after reporting earnings were down year over year. First quarter earnings came in flat, down from 4 cents per share in the same quarter of last year. Sales came in at $3.01 million.
Vipshop Holdings Limited (NYSE: VIPS) fell 15.9 percent to $12.70 in pre-market trading after the company reported weaker-than-expected earnings for its first quarter on Monday.
Aptose Biosciences Inc. (NASDAQ: APTO) shares fell 11 percent to $2.98 in pre-market trading after climbing 2.45 percent on Monday.
Sibanye Gold Limited (NYSE: SBGL) shares fell 8 percent to $2.91 in pre-market trading after surging 6.40 percent on Monday.
Switch Inc (NYSE: SWCH) shares fell 7.2 percent to $14.36 in pre-market trading following a first-quarter earnings miss.
Agilent Technologies, Inc. (NYSE: A) fell 7.1 percent to $64.31 in pre-market trading following mixed Q2 results.
Tandem Diabetes Care, Inc. (NASDAQ: TNDM) fell 5.8 percent to $10.50 in pre-market trading after rising 25.22 percent on Monday.
Carbon Black, Inc. (NASDAQ: CBLK) shares fell 5.1 percent to $22.46 in pre-market trading.
Home Depot Inc (NYSE: HD) fell 2.4 percent to $186.65 in pre-market trading. Home Depot reported better-than-expected earnings for its first quarter, while sales missed estimates
Top 5 Undervalued Stocks To Watch For 2019: Radian Group Inc.(RDN)
Advisors’ Opinion:
- [By Joseph Griffin]
Radian Group (NYSE: RDN) and MGIC Investment (NYSE:MTG) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.
Top 5 Undervalued Stocks To Watch For 2019: Antares Pharma, Inc.(ATRS)
Advisors’ Opinion:
- [By Logan Wallace]
BidaskClub upgraded shares of Antares Pharma (NASDAQ:ATRS) from a buy rating to a strong-buy rating in a research note issued to investors on Tuesday morning.
- [By Stephan Byrd]
Antares Pharma, Inc. (NASDAQ:ATRS) Director Jacques Gonella sold 300,000 shares of the firm’s stock in a transaction dated Wednesday, May 9th. The stock was sold at an average price of $2.47, for a total value of $741,000.00. Following the completion of the sale, the director now directly owns 11,936,413 shares of the company’s stock, valued at approximately $29,482,940.11. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.
Top 5 Undervalued Stocks To Watch For 2019: West Pharmaceutical Services, Inc.(WST)
Advisors’ Opinion:
- [By Ethan Ryder]
West Pharmaceutical Services (NYSE: WST) and Carlisle Companies (NYSE:CSL) are both mid-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
Top 5 Undervalued Stocks To Watch For 2019: CyberArk Software Ltd.(CYBR)
Advisors’ Opinion:
- [By Chris Lange]
The short interest at CyberArk Software Ltd. (NASDAQ: CYBR) increased to 1.10 million shares from the previous level of 861,800. Shares were trading at $53.34, within a 52-week range of $39.34 to $55.63.
- [By Joe Tenebruso]
Nearly 90%of security professionals believe that an enterprise’s IT infrastructure is not fully protected unless its privileged accounts are secured, according to a survey by CyberArk Software Ltd.(NASDAQ:CYBR). This global demand for cybersecurity solutions that safeguard an organization’s most sensitive data is helping to fuel CyberArk’s growth, as evidenced by its strong first-quarterresults.
