Down 20%, Still A Buy: Why I'm Doubling Down On UnitedHealth Group

(6min)

Summary

  • UnitedHealth Group Incorporated is down 20% after a Q1 earnings miss and lowered guidance, presenting a rare buying opportunity for a quality stock.
  • Despite short-term challenges, UNH remains a defensive leader with resilient revenue streams, making it a strong buy during economic downturns.
  • UNH's combination of stable insurance revenue and high-growth potential from Optum, along with a favorable valuation, underscores its long-term investment appeal.
  • The recent sell-off appears overblown, and UNH's strong fundamentals, including dividends and buybacks, make it a compelling long-term investment.

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Thesis Summary

UnitedHealth Group Incorporated (NYSE:UNH) is down 20% after a Q1 earnings miss and lowered guidance. But is this selloff justified?

The company is undoubtedly dealing with some issues, but this is, in my opinion, a market overreaction.

This stock is part of my End Of The World Portfolio.

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This article was written by

23.55K Followers

James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.

The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more.

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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