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Thesis statement
I am bullish on (NYSE:UNH), driven by the company’s diversified model seen in an impressive FY2024 growth outlook of between $450 billion and $455 billion for FY2025. Despite projected federal Medicaid budget cuts
UnitedHealth: Diversity Is The Key To Hedging Against Looming Challenges
Summary
- I'm bullish on UNH due to its diversified business model, driving strong revenue growth and resilience amid Medicaid budget cuts and sector volatility.
- Despite federal healthcare cuts, UnitedHealth is gaining new clients and expanding in self-funded and senior care, reflecting strong demand for its innovative offerings.
- Financials are robust: Q1’25 revenues are up 8.7% YoY, margins improving, low debt risk, and the stock trades at a discount to peers despite superior profitability.
- Given its undervaluation, strong margins, and strategic positioning, I see a 24% upside and recommend investors seize this attractive entry point.
First Principles Partners is an equity research analyst specializing in technology, innovation, and sustainability investment. My unique approach, "First Principles," involves breaking down complex problems to their most basic elements in terms of financial and technology, enabling me to uncover overlooked investment opportunities.With a strong background in investment, private equity and venture capital, I have a proven track record of delivering strong returns for readers. Articles on Seeking Alpha focus on emerging technologies, sustainable investing, and the intersection of innovation and finance. I am passionate about sharing insights with a wider audience and learning from fellow investors. Together, we can drive positive change and contribute to a more sustainable and innovative world.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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