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Opinions Michael Hakes - CFA, MBA
UnitedHealth Group IncUNHTOP PICKApr 14, 2023
Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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The stock has been flat, but at current share prices he's been adding. UNH is the giant of US healthcare. Now is a great entry point. Trades at 18x PE. Can deliver 8-10% topline growth and around 8-9% bottom line. They have a great track record. They participate in Medicare Advantage with a 20% market share.
Owns shares in company. Usually weakness in shares before US election with worries of healthcare changes. Would recommend holding.
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Premium contentAmerican healthcare
As noted, 2023 was unkind to healthcare stocks, but UNH shed only 1%, thanks to a rebound in Q4. UNH remains America's biggest health insurer. It beat its last four quarters, trades at a safe 0.62 beta as well as a 22.85x PE, which is historically in-line. Earlier in 2023, the stock took a hit when the company noted that post-Covid the U.S. was seeing a rebound in elective surgeries, which would increase medical costs and cut into UNH's margins. However, this is a passing concern. View UNH in the long-term. Its shares have climbed 144% in five years and the projectory has been largely up, though the last two years have been bumpy. As we exit post-Covid, Wall Street expect UNH to resume its climb. Analysts signal 20 buys, one overweight, five holds and one sell with a price target of $594.61, nearly 13% higher than its last close of $526.47. Go long on UNH.
Likes the diversified business model. Leader. Decent valuation at 19x forward PE, with 12% earnings growth. Past year has seen a rotation out of managed care into more exciting pharma names. Stable revenues, downturn-resilient. Aging US demographics will benefit.
Stan Wong
Likes it, with the economy opening up and the company securing some price increases. Not a home run stock. You're looking at returns of 10-15% per annum.
Bruce MurrayHe owns many healthcare names including UHN, but isn't excited about these names because they have lost momentum. Their CFO has warned of higher costs, which has lowered the bar a today. Earnings beat today, yes, but the bar is very low.
Joe Terranova
Massive insurance company with very strong business.
Mostly benefiting from secular growth.
16% compounding rate in earnings.
Current share price presenting great opportunity to buy.
Excellent long term hold.
Brian Madden
Insurance for employers and individuals in the USA.
Overhang on the stock fading.
Has owned shares for a long time.
Believes prospects for business excellent.