UnitedHealth: At Rock Bottom, The Only Way Is Up

White Star Research
1.34K Followers
(9min)

Summary

  • Despite a rare earnings miss, CEO departure, DOJ investigation, and guidance withdrawal, we view UNH as a strong long-term buy at current depressed valuations.
  • UNH’s robust balance sheet, healthy dividend coverage, and potential for substantial share buybacks should create a valuation floor and support near-term downside protection.
  • Even in a worst-case 30% y/y EPS decline, UNH trades well below historical and market multiples, offering an attractive entry point in our view.

UnitedHealthcare headquarters in Minnetonka, Minnesota, USA

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We published a deep dive on UnitedHealth Group Incorporated (NYSE:UNH) back in early 2024, identifying it as what we then viewed as a best-in-class stock in an attractive industry and issued a buy rating. Looking back, we might have called

This article was written by

1.34K Followers
Finance professional with experience across investment banking and capital markets with a great passion for fundamental long-only investing. Sector agnostic but a special emphasis on the global oil patch and aerospace & defense.

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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