Universal Health Services, Inc. (NYSE:UHS), UnitedHealth Group Incorporated (NYSE:UNH): A Look at What’s Behind the Numbers & Volatility

Watching some historical volatility numbers on shares of Universal Health Services, Inc. (NYSE:UHS), we can see that the 12 month volatility is presently 26.839000. The 6 month volatility is 27.065900, and the 3 month is spotted at 21.596800. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

From time to time, even solid companies may experience some sort of setback. Just because a company encounters one negative event, it might not be appropriate to sell the stock. Often times, the stock may still be valuable on a fundamental level, and there may be plenty of room for resurgence. When bad news hits, the stock price may be greatly impacted. Sometimes there can be an overexaggeration which leads to erroneous selling. This can in turn provide buying opportunities to those in the know. Investors who do the homework and closely examine the underlying numbers may put themselves in a good position when situation like this arise. Investors that are looking for longer term value may find that a panic sell-off is the perfect chance to get into a stock that has just suffered a temporary setback. Paying attention to these occurrences can greatly help the investor spot potential buying opportunities in the equity market.

At the time of writing, Universal Health Services, Inc. (NYSE:UHS) has a Piotroski F-Score of 6. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks.  The Price Range of Universal Health Services, Inc. (NYSE:UHS) over the past 52 weeks is 0.970000.  The 52-week range can be found in the stock’s quote summary. 

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of Universal Health Services, Inc. (NYSE:UHS) is -0.271770.  Free cash flow (FCF) is the cash produced by the company minus capital expenditure.  This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of Universal Health Services, Inc. is 0.448399.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

We can now take a quick look at some historical stock price index data. Universal Health Services, Inc. (NYSE:UHS) presently has a 10 month price index of 1.15401. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.11331, the 24 month is 1.15709, and the 36 month is 1.15861. Narrowing in a bit closer, the 5 month price index is 1.08384, the 3 month is 1.20499, and the 1 month is currently 1.00463.

Investors may be interested in viewing the Gross Margin score on shares of Universal Health Services, Inc. (NYSE:UHS). The name currently has a score of 8.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative. The Q.i. Value of Universal Health Services, Inc. is 27.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of Universal Health Services, Inc. (NYSE:UHS) is 4118.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.  The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of Universal Health Services, Inc. (NYSE:UHS) is 4190.  The lower the ERP5 rank, the more undervalued a company is thought to be.

Investors may be trying to decide if it is the right time to enter the equity market. Stocks have been performing well of late, and investors may be eager to catch the next potential move higher. When looking to put money into the stock market, investors might be working hard to create a strategy and choose specific stocks to add to the portfolio. Building a strategy can be tough, but sticking to a strategy can be even tougher. Sticking to the game plan when markets are in flux can greatly improve the investor’s chances of succeeding in the market. 

Taking a look at some historical volatility numbers on shares of UnitedHealth Group Incorporated (NYSE:UNH), we can see that the 12 month volatility is presently 25.299400. The 6 month volatility is 27.380600, and the 3 month is spotted at 27.900800. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

When dealing with the volatility and unpredictability of the stock market, investors may have to learn how to deal with their emotions. There are many factors that can have a big impact on the portfolio. Maintaining discipline can be one of the most important factors. From time to time, investors will be overcome by fear during a large market selloff. On the other side, investors may become extremely excited during a widespread market move to the upside. When these situations occur, investors tend to make better decisions if they are able to keep emotions out of play and stick to the original plan. Buying and selling at the wrong time can lead to portfolio underperformance, and it may damage investor confidence in the future.

We can now take a quick look at some historical stock price index data. UnitedHealth Group Incorporated (NYSE:UNH) presently has a 10 month price index of 1.04258. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.18777, the 24 month is 1.54834, and the 36 month is 2.03968. Narrowing in a bit closer, the 5 month price index is 0.96808, the 3 month is 1.08577, and the 1 month is currently 0.94688.

At the time of writing, UnitedHealth Group Incorporated (NYSE:UNH) has a Piotroski F-Score of 6. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Investors may be interested in viewing the Gross Margin score on shares of UnitedHealth Group Incorporated (NYSE:UNH). The name currently has a score of 3.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative. The Q.i. Value of UnitedHealth Group Incorporated is 30.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of UnitedHealth Group Incorporated (NYSE:UNH) is 3387.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.  The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of UnitedHealth Group Incorporated (NYSE:UNH) is 4842.  The lower the ERP5 rank, the more undervalued a company is thought to be.

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks.  The Price Range of UnitedHealth Group Incorporated (NYSE:UNH) over the past 52 weeks is 0.880000.  The 52-week range can be found in the stock’s quote summary. 

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of UnitedHealth Group Incorporated (NYSE:UNH) is 0.669347.  Free cash flow (FCF) is the cash produced by the company minus capital expenditure.  This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of UnitedHealth Group Incorporated is 1.110559.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

Investors are constantly trying to gain any little advantage when it comes to the stock market. Setting realistic goals and staying disciplined when trying to attain those goals can have a positive impact on an investor’s psyche and portfolio performance. Making a couple of badly timed trades can have a drastic effect on the mindset of the investor or trader. Sometimes, investors will have a few missteps that generally include buying when the market is too high, selling when the market is low, or being on the sidelines during a major charge higher. Staying disciplined can help the average investor avoid common pitfalls to help keep the focus in the right direction. When inevitable mistakes are made, investors will have the opportunity to learn from those mistakes and get back on the road to recovery.

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