RapidEye
- UNH’s sideways trade remains a gift after the regulatory probe/ cyberattack, with things remaining uncertain through 2025.
- Despite near-term challenges, the management reports double beat FQ1’24 earnings, offered an optimistic FY2024 guidance, and raises dividend by +11.7%.
- With UNH still trading near to its 10Y P/E mean, the stock remains a compelling Buy here, with great upside potential and expanded forward dividend yields.
- Assuming that it can counter these near-term headwinds, we believe that the health care company may emerge much stronger by 2025, aided by the Brazil divestiture.
- We will also be highlighting a few metrics to look out for in the upcoming FQ2’24 earnings call on July 16, 2024, with it underscoring the health of UNH’s businesses along with near-term prospects.
We previously covered UnitedHealth Group (NYSE:UNH) in March 2024, discussing why it was an even more attractive Buy after the regulatory probe/cyberattack, as the discounted valuations and stock pullback offered expanded upside potential and dividend yields for an improved margin of safety.
While there might be near-term headwinds ahead, attributed to the potential regulatory fines, lawsuits, and increased spending on cybersecurity, we maintained our belief that these issues were likely to be temporal, posing little challenges to its long-term prospects.
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