And the biotech firm could rise even more due to a recent regulatory approval and healthy profits. But another likely reason is Big Money lifting the stock.
Big Money Back for United Therapeutics
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And United Therapeutics has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, check out how the last few weeks have seen Big Money activity. The green bar signals big trading volumes as the stock ramped in price:
In the last year, the stock attracted a new Big Money buy signal, after receiving them regularly for years. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
1-month outperformance vs. Health Care Select Sector SPDR ETF (+3.0% vs. XLV)
Outperformance is important for leading stocks.
United Therapeutics Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, United Therapeutics has a strong profit margin and is attractively valued. Take a look:
Profit margin (+28.2%)
Forward price-to-earnings ratio (+12.9x)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, UTHR has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
UTHR has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 53 times since 2004, with its first appearance on 05/03/2004…and gaining 1,758.7% since. Big Money was all over the shares years ago and it’s recently come back in; the blue bars below show when United Therapeutics was a top pick:
It’s been a top stock in the health care sector according to the MAPsignals process. I wouldn’t be surprised if UTHR makes additional appearances in the years to come. Let’s tie this all together.
United Therapeutics Price Prediction
The United Therapeutics rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in UTHR at the time of publication.
Learn more about the MAPsignals process here.
This article was originally posted on FX Empire