Scott R. Grossman
Founder of Vindico Capital, Consumer-Sector Investor
UnitedHealth's earnings visibility, unusually high dividend yield and resumed buybacks make paying under 16x forward earnings not look terrible. Still reasonably confident it is a good place to hide for long-term capital: Hemsley keeps clearing the bar, and UnitedHealth has beaten and raised guidance for three straight quarters. Further derisking remains a risk. x.com x.com x.comÂ
UnitedHealth's Q2 beat and raise vindicates the bullish case. Per Wall St Engine, adjusted EPS was $6.38 against $4.85 expected, the medical care ratio fell 270 bps to 86.7%, and FY26 adjusted EPS guidance rose to $19.50-$20.00 versus about $18.32 expected, with planned buybacks doubled to at least $5.0B. x.comÂ
Healthcare is the clearest place money is moving, and UnitedHealth is the preferred name here. It beat earnings and raised its 2026 profit forecast. x.comÂ
UnitedHealth's potential earnings recovery and margin expansion offer a fundamental case for its emerging Stage 2 uptrend. EPS is expected to grow 53%, from $20.47 in 2026 to $31.31 by 2029, while revenue is projected to rise from $448B to $511B; a weekly bull flag has broken out. x.comÂ
UnitedHealth's debt has to come down to a manageable $20-30B, which would also cut interest expense, and the institutions, TV contributors and big retail accounts pumping it like the next Nvidia are ignoring that. Health insurance is not going away, but the numbers matter more than the hype. x.comÂ
UnitedHealth is cheap against its earnings at about 17 times next year's, while health insurers usually get 20 times. Twenty times next year's estimated $22.55 per share, give or take 12%, puts fair value at about $396.80-$505.02, above the $376.30 price; it turns expensive above $435.96. The forward read leans on a forecast 45% above trailing earnings. This is a levels-only screen off reported earnings and revenue estimates, with no fundamental work. x.comÂ
UnitedHealth's Q2 confirms it is back to underpromising and overdelivering, removing any remaining doubt. Per the quoted results, adjusted EPS of $6.38 beat the $4.85 estimate, the medical cost ratio improved 270 bps to 86.7%, and full-year adjusted EPS guidance rose to $19.50-$20.00. CEO and congressional share purchases, plus Americans' need for the most important health insurer in the world, bode well for the company and the stock. x.com x.comÂ
UnitedHealth's regulatory risk looks too excessive to justify holding it at its valuation, and owning it in the first place was a mistake. x.comÂ
UnitedHealth collects ever-rising US healthcare spending, and its stock has stopped falling. Family plan costs rose 249% in two decades toward $24,000, US spending nears $10,000 a person, and the over-65 population is set to double to two billion by 2050. After earnings fell 59% and 69% in back-to-back quarters and the stock dropped from 606 to 248, it based near 250 for a year, a Weinstein Stage 1, then reclaimed its moving average and pushed above 400. x.com x.com x.com x.comÂ
UnitedHealth may be making a rare episodic pivot for a stock its size, coming off an earnings beat. The stock is incredibly undervalued. x.comÂ
UnitedHealth's rebound still has a Medicaid problem because care costs are outpacing state funding. Q3 operating profit rose to $6.6bn from $4.3bn a year earlier, but Medicaid is still expected to lose money in 2026. x.comÂ
UnitedHealth may be trading at a discount, with a price-to-sales ratio of 0.60x versus its 10-year average of 1.19x. x.comÂ
