UnitedHealth: The Worst Seems To Be Priced In

Brett Ashcroft Green
7.83K Followers
(9min)

Summary

  • The current valuation drop has surpassed even the most pessimistic scenarios, signaling deep market concern and possible opportunity.
  • The starting dividend yield is now near a record 10-year high.
  • The stock faces a significant re-rating, trading -50+% off the all-time high.
  • UNH appears to have settled into a stable range as investors calculate worst-case outcomes.

Hospital Hallway with Doctors, Nurses and Specialists in Hospital. Female and Male Physicians, Surgeons, Healthcare Officials Walk Together in Corridor with Their Back to Camera

gorodenkoff

What is at stake?

Buying UnitedHealth Group (NYSE:UNH) (NEOE:UNH:CA), -50% off the highs is not an original idea, but it is one that is gaining traction as more and more investors work through worst-case scenarios. The company continues to face regulatory

This article was written by

7.83K Followers
I'm a full time value investor and writer who enjoys using classical value ratios to pick my portfolio. My previous working background is in private credit and CRE mezzanine financing for a family office. I'm also a fluent Mandarin speaker in both business and court settings, previously serving as a court interpreter. I have spent a good chunk of my adult working life in China and Asia. I have worked with top CRE developers in the past including The Witkoff Group , Kushner Companies, Durst Organization and Fortress Investment Group.

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.

The information provided in this article is for general informational purposes only and should not be considered as financial advice. The author is not a licensed financial advisor, Certified Public Accountant (CPA), or any other financial professional. The content presented in this article is based on the author's personal opinions, research, and experiences, and it may not be suitable for your specific financial situation or needs.

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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