UnitedHealth Group: The Market Is Underpricing This Unique Health Care Operator


  • UnitedHealth Group is trading below its 5-Yr average P/E ratio. The stock went down along its healthcare services peers, but UNH is not like any other health provider.
  • The company’s Optum businesses provide synergies and profitability its competitors can only dream of.
  • The Optum Insight health-tech business surpassed $30B backlog and promises resiliency in the company’s industry-leading margins.
  • Not many companies this large can confidently guide 13%-16% EPS CAGR well into the future.
  • I find the fair value of the stock to be at $664, a rare 37.0% upside for a blue chip company like UNH.
Nurse working at the reception desk in the private clinic


UnitedHealth Group (NYSE:UNH) is the biggest health care company in the world in terms of market cap and revenues. Its main business is its health care insurance segment in UnitedHealthcare, but its Optum segment, which provides care delivery, pharmacy services and health-tech solutions

Disclosure: I/we have a beneficial long position in the shares of UNH, CVS 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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