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The more the stock price of healthcare company UnitedHealth Group Incorporated (NYSE:UNH) crashes, the giddier I am getting about getting a good deal. The insurance company has suffered from high costs in its insurance business as of
UnitedHealth: The Bottom Might Be In (Technical Analysis)
Summary
- Despite rising medical costs and margin pressures, UnitedHealth Group Incorporated remains solidly profitable, with strong sales growth and a robust net earnings base.
- UNH stock is now technically oversold, trading at just 12x 2026 estimated profits and offering a 3.3% dividend yield, making it attractive for value investors.
- A recovery is possible if UnitedHealth Group controls its medical care ratio and meets profit guidance, with even slight improvements likely to shift sentiment positively.
- While risks remain, I see the current valuation as distressed and believe we may be near the bottom if cost controls and profitability are maintained.
A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of UNH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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