UnitedHealth’s Q3 Earnings Preview: A Tactical Opportunity Of Note

Summary:

  • UnitedHealth Group Incorporated’s Q3 earnings report is due October 15th.
  • We expect sustained gross income from a favorable insurance pricing environment. However, claims remain unpredictable.
  • Lower interest rates, tight credit spreads, and compressed SOFRs provide an enhanced asset-liability outlook.
  • UNH stock’s valuation multiples are up for debate, yet we expect the company’s multiple to expand in late 2024, lending us a bullish argument.
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UnitedHealth Group Incorporated (NYSE:UNH) is set to report its third-quarter earnings results on October 15th, sparking widespread attention among market participants.

Whether actively trading the event, mitigating risk, or simply observing with interest, UnitedHealth’s earnings call marks a telling occasion on most investors’ calendars. Therefore, we

Loss Ratio
Q2’23 83.2%
Q2’24 (Latest) 85.2%

Industry Annual Growth Rate (2017-2023)
Optum Health Direct Health Care 29%
Optum Insights Medical Research & Data 15.2%
Optum RX Pharmacy 10.5%

Metric Value 5-Y AVG.
Price-to-Sales 1.42x 1.36x
Price-to-Book 6.16x 5.55x
Price-to-Earnings 22.37x 21.86x
Dividend Yield 1.35% 1.36%


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