10 April 2015 at 10:52 GMT
By Peter Garnry
Next week 45 companies in the S&P 1200 Global Index will report earnings with US company reports for Q1 set to play a dominant role. Below we highlight the most important of the upcoming releases:
- Tuesday: Johnson & Johnson, Wells Fargo, JPMorgan Chase, Intel
- Wednesday: Petrobras, Bank of America, Delta Air Lines, Netflix
- Thursday: Taiwan Semiconductor, Citigroup, Philip Morris, Schlumberger, Goldman Sachs, American Express, UnitedHealth Group, BlackRock
- Friday: General Electric, Honeywell
UnitedHealth still looks attractive
Among the most important releases, UnitedHealth Group is the only stock among our top US mega cap alpha picks. The provider of organised health systems including the administration of employee benefit programmes, has been in a strong uptrend the past year and has risen 51% Despite this impressive performance, our equity model still has it as its second most attractive mega cap stock in the US.
The company has 19.7% in ROIC on top of a decent valuation of EV/EBITDA 10.4x which together with a growing market and solid industry position makes it a very attractive cocktail for the long-term investor.
Analysts are expecting Q4 EPS $1.35 up 22% y/y and sales of $34.7 billion up 9.4% y/y; EPS estimates are up 9% over the past six months, highlighting the increasing sentiment on the stock. The company releases Q4 earnings on Thursday before the market opens.
UnitedHealth looks to be in fine form. Photo: iStock
– Edited by Clare MacCarthy
Peter Garnry is head of equity strategy at Saxo Bank – the home of social trading