UnitedHealth Group (UNH)
Entry: Unlock
Price target: 630.00-635.00
Second PT: Unlock
The past 12 months have been unusual for UnitedHealth Group—not in terms of financial performance, but in leadership. The company made headlines late last year when its CEO, Brian Thompson, was tragically shot and killed in December. The shocking event created uncertainty among investors, sending the stock tumbling more than 30%. While the incident sparked controversy and debate, looking beyond the tragedy and focusing on UnitedHealth as a business reveals a potential opportunity for investors.
Financially, UnitedHealth hit a major milestone in 2024, surpassing $100 billion in quarterly revenue for the first time in Q3—then repeating the feat in Q4. This brought full-year revenue to a record $400 billion. However, the company faced headwinds on the profit front, with net income declining 35% year over year due to rising medical costs and a cybersecurity attack. Despite these setbacks, earnings are expected to recover in 2025 and beyond.
From a balance sheet perspective, UnitedHealth remains strong, with $302 billion in assets against just under $200 billion in liabilities, leaving the company with $102 billion in positive equity. Free cash flow has also climbed to an impressive $20.7 billion, reinforcing the company’s ability to sustain and grow its dividend—something it has a long history of doing.
For those unfamiliar, UnitedHealth Group provides healthcare coverage, software solutions, and data consultancy services. Operating through its UnitedHealthcare and Optum segments, the company has been a dominant force in the industry since its founding in 1977. Today, it stands as the largest health insurance provider in the United States.
Please note that this may take beyond this week to come around to price targets.
Cronos Group (CRON) - High risk
Entry: Unlock
Price target: 2.30-2.40
Second PT: Unlock
The global cannabis market is expanding rapidly, with the legal sector projected to grow at a compound annual growth rate (CAGR) of 25.7%, reaching $102.2 billion by 2030, (Grand View Research). Currently, 38 states have legalized marijuana for medical use, while 24 states permit recreational use for adults. As legalization efforts continue to gain momentum, public support for cannabis reform is increasing across the U.S.
A major development anticipated in 2025 is the potential rescheduling of cannabis under the Controlled Substances Act (CSA). In April 2024, following President Biden’s directive, the Drug Enforcement Administration (DEA) announced plans to begin the formal rule-making process to reclassify cannabis from a Schedule I to a Schedule III controlled substance, aligning with a prior recommendation from the Department of Health and Human Services (HHS). While President Trump has appointed officials who could challenge cannabis legalization, he has also expressed support for state-led initiatives and the reclassification of cannabis to Schedule III, perhaps a legal issue that he and Biden might agree on.
The number of publicly traded companies in the cannabis space are limited, and the ones selling actual THC products are listed out of Canada; however there are some names that are still available to U.S. investors, with Cronos being one of the most promising. Cronos has grown its annual revenue at double digit rates for the past four years, and triple digit rates the previous years. The company posted a full profitable year in 2024, leaving them at a price to earnings ratio of 17x. At a $684M market cap, Cronos may be undervalued, especially when accounting for their $1.11B in positive equity.
Please note that Cronos and other companies in the cannabis space are still a high risk investment as their future depends on regulatory developments, which will flood the market with competitors when it happens.
Please note that this may take beyond this week to come around to price targets.
MercadoLibre (MELI)
Entry: Unlock
Price target: 2350.00-2400.00
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MercadoLibre operates the largest e-commerce marketplace in Latin America, connecting a vast network of over 140 million active users and 1 million active sellers across 18 countries. Beyond its core marketplace, the company has built a powerful ecosystem of complementary businesses, including shipping solutions (Mercado Envios), digital payments and financing (Mercado Pago), advertising services (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops). It generates revenue through multiple streams, such as final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.
Often compared to a young Amazon, MercadoLibre has expanded beyond e-commerce to establish itself as a technology-driven company. Its leadership has introduced advanced software solutions, including Fury, an Internal Developer Platform that provides a unified, self-service environment for developers to efficiently build, deploy, manage, and monitor applications. The company also operates MeliCloud, a cloud infrastructure platform designed to enhance scalability through a microservices-based architecture.
From a financial perspective, MercadoLibre’s growth has been nothing short of remarkable. Over the past five years, revenue has surged from just under $4 billion in 2020 to over $20 billion in 2024, with projections indicating it could double again in 2025. Profitability has kept pace, with net income reaching a record $1.91 billion last year. Free cash flow has also expanded steadily, hitting $5.36 billion in the most recent earnings report.
As e-commerce and digital banking continue to gain traction in Latin America, MercadoLibre is positioned at the forefront of this explosive opportunity. If the company can sustain its growth trajectory, its market capitalization is likely to keep soaring.
Please note that this may take beyond this week to come around to price targets.
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You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
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The stocks posted above are the preliminary stocks and set ups we’ll be watching this week. All price points are subject to change based on market performance and sector health. Please do your own research and analysis on these companies/charts before taking on any set ups. Trade at your own risk and as always, good luck!