United Health Group (UNH) is a Managed Health Care Stock that is Now Trading at Fair Valuation Levels!!!

 

UnitedHealth Group (UNH) stock price has been cut roughly in half since November 2024.  It is currently going through some probes of it's business by the DOJ, but I view this as temporary noise for the company.  

Below is a 13 year historical chart of UNH which shows the big price drop.  The black line (stock price) is now trading near the orange (Fair Value Ratio) line.  Warren Buffett and Michael Burry have recently bought shares of UNH recognizing it's much better valuation today.  The stock is not without risks given the DOJ probes that are ongoing, but it also offers tremendous upside value if the business can turn around.   

UNH is one of the most popular stocks in top hedge funds and is a dividend growth stock.  It has a yield of 2.91% or $8.84/share annually.  Over the past 13 years, since December 2012, UNH has outperformed the S&P 500 with a $10,000 investment worth $68,000 as of August 27, 2025 versus the $56,201 for the S&P 500.  It has a double digit compound growth rate of 16.35% versus 14.62% for the S&P 500.  The 13-year average and compound dividend growth rates were 22% and 21% respectively, which is excellent!
 

I feel that UNH is a potential very good buy at near $300 or less for it's stock price for investors that are comfortable with some risk given the current probes into it's business and any other unforeseen issues that are impossible to predict with any company. 

References: 

Disclaimer: This blog has been created for sharing my personal investment ideas only. I do not receive any compensation for this blog or the content within. I am not an investment advisor or professional. This blog is my own personal opinion and is not meant to be a recommendation of the purchase or sale of any stock or ETF. Please do your own due diligence and research before deciding to purchase any investments of your own. 

 

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